Honda and Nissan reportedly discuss a merger to strengthen EV competitiveness

[Jack Aylmer]

TWO OF JAPAN’S BIGGEST AUTOMAKERS ARE TEAMING UP TO BECOME MORE COMPETITIVE IN THE EV SECTOR.

HONDA AND NISSAN ARE CURRENTLY IN TALKS TO MERGE-

WITH THE TWO COMPANIES HAVING REPORTEDLY SIGNED A MEMORANDUM OF UNDERSANDING-

OUTLING THEIR PLANS TO SPLIT EQUITY INTO A NEW HOLDING COMPANY FROM WHICH BOTH WILL DO BUSINESS.

A CHIEF GOAL OF THIS PROPOSED PARTNERSHIP WOULD BE TO ENABLE HONDA AND NISSAN TO BETTER CHALLENGE LEADING EV MANUFACTURERS LIKE TESLA AND BYD.

MITSUBISHI IS ALSO SAID TO HAVE BEEN INVITED TO JOIN THIS COLLABORATION-

HAVING ALSO PREVIOUSLY BEEN ASKED TO JOIN HONDA AND NISSAN’S EARLIER EFFORTS TO JOINTLY DEVELOP EV TECHNOLOGY.

MEANWHILE, NISSAN MAY HAVE THE MOST TO GAIN FROM THIS DEAL.

THE AUTOMAKER’S CURRENT FINANCIAL OUTLOOK IS BELIEVED TO BE SO DISMAL THAT IT WILL ONLY SURVIVE FOR ANOTHER YEAR UNLESS A COMPANY-

LIKE HONDA-

BUYS UP ITS SHARES.

ACCORDING TO REUTERS, NISSAN’S MID-2024 NET EARNINGS DROPPED MORE THAN 90 PERCENT YEAR-OVER-YEAR-

PROMPTING A 70 PERCENT REDUCTION IN ITS ANNUAL OPERATING PROFIT FORECAST.

THIS POTENTIAL MERGER COMES AT A PIVOTAL TIME FOR JAPAN’S AUTOMOTIVE INDUSTRY-

WHICH HAS LAGGED BEHIND CHINA IN THE EV TRANSITION.

AS A RESULT, JAPANESE CAR MAKERS ARE NOW LOSING MARKET SHARE IN KEY REGIONS, INCLUDING EAST AND SOUTHEAST ASIA, WHERE CHINESE MANUFACTURERS ARE DOMINATING.

TO GET MORE STORIES ABOUT HOW AUTOMAKERS AROUND THE WORLD ARE NAVIGATING THE EV SECTOR, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.