Honda and Nissan are set to announce launch of integration talks

Rumours of this from last week:

• Honda and Nissan to begin merger talks

• Nissan and Honda are said to be in talks to set up a holding company

More emerging now, with Honda and Nissan set to announce discussions on business integration on Monday, according to unnamed sources.

• Details of Integration Talks:

  • Board meetings and a joint press conference, also involving Mitsubishi Motors, will take place on Monday.
  • A potential merger could form the world’s third-largest auto group by sales, following Toyota and Volkswagen.

• Motivations and Challenges:

  • Both companies face competition from Tesla and Chinese manufacturers, along with declining sales in key markets like China and the U.S.
  • Past collaborations include electrification, software development, and joint research.

• Integration Possibilities:

  • Proposals include Honda supplying hybrid vehicles to Nissan and shared use of Nissan’s UK factory.
  • Finalization of integration talks is targeted for June 2025.

• Stakeholder Views:

  • Renault, Nissan’s top shareholder, supports the idea in principle and is evaluating its implications.

This article was written by Eamonn Sheridan at www.forexlive.com.