Advertisement
Supported by
Japan’s second- and third-largest automakers hope the $50 billion deal would help them catch up with Tesla and China’s BYD in electric vehicles and advanced software.
Along the Akira Davis River
Report from Tokyo
Honda Motor and Nissan Motor are exploring a merger to create one of the world’s largest auto groups as they seek to better position themselves for the expensive technological transition reshaping the automotive industry.
On Monday, Honda and Nissan signed a memorandum of understanding to formally begin talks aimed at deepening a partnership that began this year. Over the next six months, the companies will discuss combining their operations under a holding company, with the goal of completing the merger in August 2026.
Honda and Nissan, Japan’s second- and third-largest automakers, would join a growing number of legacy auto giants, including General Motors and Volkswagen, that are deepening ties to share the financial burden of developing next-generation vehicles. The deal is seen as a lifeline in particular for Nissan, which has been slashing jobs and production amid faltering sales.
Unlike the gasoline-powered cars that anchored the industry for most of the last century, more and more cars feature batteries, electric motors and complex software that enable features like autonomous driving.
To navigate the change, Honda and Nissan have decided they can better handle research and development and new investments as a combined force, Honda’s chief executive, Toshihiro Mibe, said at a briefing in Tokyo on Monday.
“Current economic models are being turned upside down. This will probably not take 10 to 20 years to arrive; it will arrive much faster,” Mibe said. “We want to have the right artillery to be competitive on this battlefield, that’s why we start today. “
We are having retrieving the content of the article.
Allow JavaScript in your browser settings.
Thank you for your patience while we determine access. If you’re in Reader mode, exit and log into your Times account or subscribe to the full Times.
Thank you for your patience while we verify access.
Are you already subscribed? Access.
Want all of The Times? Subscribe.
Advertisement