Japanese automobile manufacturers seem to cause a significant change in the industry. It has been reported that negotiations have begun for the possibility of a merger between Nissan Motor and Honda Motor. According to news from Japan, the possible agreement will enable the two companies to operate under one roof.
Nissan-Honda-Mitsubishi alliance may be on the way
According to the agreement, Nissan wants to include Mitsubishi Motors, of which it owns 24 percent, in this structure. If completed, the new company will become one of the world’s largest automobile manufacturers with annual sales of over 8 million vehicles.
However, this figure is behind industry leaders Toyota Motor and Volkswagen, which recorded sales of 11.2 million and 9.2 million vehicles in 2023, respectively. Although Nissan and Honda agreed to the talks, they declined to confirm their merger plans.
The companies said in their statements that they were “exploring various possibilities for future collaborations” and would provide updates to investors at the appropriate time. These talks will enable the two automakers to share automotive components and software.
Automotive experts expect mergers to increase in the industry as companies share costs and better compete against Tesla’s dominance as Chinese automakers rise. The Nissan-Honda-Mitsubishi alliance is reminiscent of Stellantis, which was established as a result of the agreement between Fiat Chrysler and PSA Groupe.
Of course, with the allegations coming out, the stock market also became active. Accordingly, Honda’s shares traded in the USA closed with an increase of approximately 1 percent, while the shares of Nissan, which is in the process of restructuring, increased by more than 11 percent.
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