Japanese automakers Nissan Motor Co Ltd NSANY and Honda Motor Co Ltd HMC are reportedly negotiating a merger, first revealed by the Nikkei newspaper Tuesday, aiming to consolidate under a holding company and include Mitsubishi Motors.
What To Know: Per Nikkei, the combined Nissan-Honda-Mitsubishi group could account for over eight million annual vehicle sales, positioning it among the largest automakers but trailing Toyota Motor's 11.2 million and Volkswagen's 9.2 million.
Per a report by CNBC, Nissan and Honda earlier declined to confirm the report, stating they are exploring collaborative opportunities without final decisions. Earlier this year, the firms partnered on shared components and software, potentially paving the way for integration.
The merger talks come as Nissan grapples with ongoing challenges, including weak profitability and recovering from a tumultuous period marked by the fallout from former Chairman Carlos Ghosn's ouster in 2018.
The company has also been under pressure to expand its electric vehicle offerings to compete with Tesla and Chinese rivals.
The response was positive, with Honda's U.S.-traded shares rising 0.96% to $25.26 and Nissan's over-the-counter shares jumping 11.46% to $5.11 at market close on Tuesday.
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Photo: Courtesy of Nissan
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