Negotiations Underway for Honda and Nissan Merger: A Strategic Move to Cut Costs and Enhance Competitiveness
According to foreign media reports, negotiations have already taken place for the merger of Honda and Nissan, with the signing of a basic merger agreement between Honda Motor and Nissan Motor expected soon. Sources suggest that the collaboration is being pursued to reduce costs.
Both companies are Japan’s second and third-largest automakers and are seeking to establish a holding company in order to share technology and expenses, aiming to enhance competitiveness, which would ultimately benefit consumers.
In August, the two companies agreed to standardize parts for electric vehicles and jointly develop a software platform. This collaboration will also include joint efforts in terms of model features and parts supply.
The two automakers are facing stiff competition from foreign rivals, particularly in the fields of electric vehicles, autonomous driving, and software development. American company Tesla and China’s BYD are ahead in these areas.
By September of this year, Nissan’s net profit was nearly 94% lower compared to the previous year, partly due to a decline in sales in the United States.
There has also been discussion about whether Mitsubishi, another company, will be included in the potential holding company. Mitsubishi could also join the merger discussions with Honda.
