Following a signing of two memorandums of understanding (MOU), one in March and another in August, and a flurry of rumors, a deeper partnership between Japanese automotive giants Honda and Nissan is becoming more official. A new MOU was signed on Monday to start discussions on a “business integration” between the two through the establishment of a joint holding company.
Ostensibly, the partnership is to collaborate on EVs to put both companies in a more competitive position against a burgeoning Chinese auto industry, legacy automakers like GM, Ford, and Hyundai, and newer contenders like Tesla and Rivian. However, some commentators, including fugitive and former Nissan CEO Carlos Ghosn, are calling it a “disguised takeover” of Nissan by Honda.
Marking the announcement, Nissan Director, President, CEO, and Representative Executive Officer Makoto Uchida said: “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Honda Director and Representative Executive Officer Toshihiro Mibe said: “Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing. Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
Nissan’s partner, Mitsubishi Motors, is also coming along for the ride. “In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors. In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation,” Mitsubishi Motors CEO Takato Kato said. “In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation.”
Honda and GM previously announced plans to offer a series of new, more affordable EV models around the 2027 timeframe via GM’s Ultium battery technology. The goal was to cut costs, targeting a base price below $30,000. In October 2023, the two automakers announced that they had canceled those plans.
Comments
What about Renault? How does it’s partial ownership of Nissan and Mitsubishi factor into this?
The Japanese government is likely behind this. There is no benefit for Honda, so why would they buy these two failing automakers, without a carrot (or stick?) from the government?
When an “outsider” Ghosn (Renault) tried to complete the purchase of Nissan / Mitsubishi they threw him in jail.
Renault has already indicated that it would back out of the partnership with Nissan, a very good thing for Nissan. I’m sure the Japanese gov’t is involved, but at least all participants are Japanese, unlike the mishmash of Stellantis, which is a big reason why that’s failing. Even VW and Ford didn’t go too well.
Renault did nothing good for Nissan. Besides. Renault is fine on its own with Dacia.
They should consider adding Isuzu for a commercial heavy duty truck and commercial equipment division (maybe they already have considered this).
With GM’s exit from everyday sedans I had been half seriously considering Honda.
Off the list now, this is going to be a train wreck.
Hopefully this doesn’t mess up Honda’s GX gas engines as well.
If they are smart, the merger will bring up Nissan and not drag down Honda. But who knows. Mergers rarely ever play out well.
Soon trump will change that.
NO, IT WILL NOT. HONDA PULLED OUT OF RUSSIA BECAUSE THEY BACKED 45. HONDA WILL NOT LISTEN TO YOUR GODKING AND HAS ZERO SAY OF WHAT A JAPANESE AUTOMAKER DOES. WE MIGHT BUILD CARS, HERE BUT THE HEADQUARTERS IS IN TOKYO. NOT MARYSVILLE. GO AHEAD, ASK ME HOW I KNOW?
Hope they do well together, than burn down.
HONSANISHI “The Sun Rising On Rice Field”
HONSANNISHI “The Three Diamonts Of Rising Sun On Rice Field” … to fire 9000 workers out soon
Japan Inc on full display. Government (MITI) is almost certainly the instigator in order to keep it all under the Japanese umbrella and to support Nissan who has serious issues. Mitsubishi is just a throw in.
When Ghosn wanted to merge Renault and Nissan under French control that set off MAJOR alarm bells in Japan at the highest government levels. Ghosn’s take down was obviously a well orchestrated event to put a stop to any of that
This has clearly been in the works for sometime since it’s no coincidence Honda severed ties with gm and now this gets announced.
I wonder what will happen to Infiniti ? team up with Acura ? or just become part of Acura and Infiniti name goes away.
Acura is part of the Honda brand. 🤦🏽♀️
Duh. Everyone who follows the industry knows Acura is Honda. . .and Infiniti is Nissan. The question is what is the future of all 4 brands (well, 5 including Mitsu – who is a zero i the US, pun intended)? Acura is much stronger than Infiniti. So do you just fold Infiniti as redundant or specialize them? Acura = leading edge tech, styling and EVs, Infiniti = more traditional luxury, ICE and hybrid only.
With the former GM/Honda partnership, I was hoping for an eventual merger. Unfortunately, I knew something was up when the EV partnership ended, and GM announced crappy Hyandai.
Honda-Nissan could be the Japanese Hyandai-Kia dominating many segments. Nissan is in trouble w/o Goshen. The Renault alliance isn’t offering much in terms of synergies anymore