The Japanese car manufacturers Honda have begun talks to study a possible merger, which would lead to the creation of a new motor giant, according to what the Japanese newspaper reported this Tuesday. Nikkei. Both companies take this step in a context of growing competition in the automobile, with Chinese manufacturers and Tesla taking the lead in the electric vehicle. The two companies have increased their ties in recent months to face this competition, which has resulted in disastrous semi-annual results for, which is the first Japanese fiscal semester.
Nissan and Honda, Japan’s third and second largest automakers, respectively, after Toyota, have been losing market share in China. , with more than 1.27 million in purchases during the month.
Both manufacturers posted global sales of 7.4 million vehicles in 2023, but are grappling with the challenges posed by the new electric paradigm, particularly in China, where BYD and other local manufacturers dominate. In March, Honda and Nissan agreed to cooperate on their electric vehicle businesses and in August deepened their ties, agreeing to work together on batteries, electric axles and other technologies.
Both companies seek to operate under a single company and are expected to soon sign a memorandum of understanding for the new merged entity, according to reports. Nikkei. Honda and Nissan are also seeking to bring Mitsubishi Motors, in which Nissan is the largest shareholder with a 24% stake, under the new company, to create one of the world’s largest automotive groups.
The two companies’ stakes in the new entity, along with other details, will be decided later. Any deal could be the largest in the industry since the $52 billion merger between Fiat Chrysler and PSA in 2021 to create Stellantis, one of the world’s largest automobile groups and the second largest. from Europe with brands such as Peugeot, Citroën, Opel, Fiat, Jeep or Maserati.
