Honda and Nissan to start talks on potential mega-merger
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Japanese carmakers Honda and Nissan will begin negotiations over a potential merger, according to reports.
The Nikkei financial newspaper said on Tuesday that the two Japanese companies would start talks to help combat the increased global competition from bigger electric vehicle makers.
The firms, which are the second- and third-largest car manufacturers in Japan, had combined vehicle sales of 7.4m vehicles in 2023 but are having to compete with soaring sales from Chinese rivals such as BYD and Li Auto.
Nissan shares soared more than 20% in early trade on Wednesday.
A Honda spokesperson said a potential merger was among the possibilities being discussed. “We are discussing possibilities for cooperation between Honda and Nissan in the future, in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,” the spokesperson told AFP.
Both companies have forged stronger ties in recent months and in March decided to join forces and work together on developing EV technology.
ny deal could be the biggest in the industry since the $52bn (£40.9bn) merger between Fiat Chrysler and PSA in 2021 to create Stellantis, one of the world’s largest auto groups with brands such as Jeep, Dodge, Maserati, Peugeot and Citroën.
It comes amid falling profits for a number of large automakers in Europe as they struggle with slower demand and intense competition, while also investing in the switch from petrol and diesel production to electric.
