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Honda and Nissan in Talks for Potential Merger
Honda and Nissan, Japan’s second and third-largest car manufacturers, are reportedly discussing a potential merger to better compete with companies like Tesla and Chinese electric vehicle (EV) brands.
Nikkei, a prominent news agency, was the first to report on these discussions. The talks are focused on how the companies can work more closely together on technology. According to Reuters, the idea is to establish a holding company to manage their collaboration, rather than a full merger.
There’s also speculation that Mitsubishi, in which Nissan holds a 24% stake, might be part of this partnership.
It’s clear that Honda and Nissan have been looking to enhance their collaboration recently to tackle the rapidly evolving EV market.
Both companies released statements confirming their intentions. They said, “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.”
Experts suggest that Honda’s skill in developing powertrains, especially for hybrid vehicles, could complement Nissan’s long-standing experience in electric cars, dating back to the launch of the LEAF in 2010.
The focus of their partnership is on EV technology, including components and software development.
This alliance originally aimed to counter significant price competition from Chinese companies like BYD. The need for collaboration has grown as the global auto market faces slowing sales in Europe and the U.S.
Furthermore, the automotive industry might see changes in the U.S. with potential shifts in pro-EV policies under President-elect Donald Trump.
The merger could also be scrutinized by the Trump administration, which has been critical of imported vehicles and has considered imposing high tariffs.
A merger between Honda and Nissan could create one of the largest automotive groups worldwide, with combined sales reaching around 8 million vehicles.
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