The companies are discussing the possibility of a full merger and are considering ways to cooperate with Mitsubishi Motors.
Japan’s Honda and Nissan are in talks to deepen ties, including a possible merger. Their combination would create a $54 billion company with an annual production of 7.4 million vehicles, making it the third largest auto group by vehicle sales behind Toyota and Volkswagen. This was reported by Reuters citing anonymous sources.
Discussions focused on finding ways to strengthen cooperation and included the possibility of creating a holding company. The companies are discussing the possibility of a full merger and considering ways to cooperate with Mitsubishi Motors, where Nissan is the largest shareholder with 24%.
The talks between Honda and Nissan, first reported by the Nikkei newspaper, will allow the companies to collaborate more closely on technology and create a tougher rival to Toyota in the domestic market.
Honda’s market capitalization is about $44 billion, and Nissan’s is about $10 billion. That would make the whole merger bigger than the giant $52 billion deal between Fiat Chrysler and PSA in 2021 to create Stellantis.
Recall that Volkswagen has announced tough cost-cutting measures, including closing at least three factories in Germany, reducing employee pay and outsourcing some departments abroad.
It was previously reported that Volkswagen has abandoned labor agreements that guaranteed the preservation of jobs until 2029.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.