Honda and Nissan confirm in a joint press release with Mitsubishi that the three car brands are joining forces to become the world's third largest car group.
Nissan and Honda confirm that the two automakers are planning a merger. An agreement could be in place by 2026.
Talks about a possible merger will take place over the next six months. Mitsubishi, of which Nissan already owns large parts, is also part of the plans.
If the merger goes through, it will result in a new corporate structure that separates Nissan from Renault, and in which Honda is expected to have a leading role.
Among other things, Honda will have the greatest power in the new company, as well as the right to appoint the CEO.
The new company will have an estimated value of approximately 342 billion kroner (50 billion dollars, ed.) and will become the world's third largest car manufacturer measured in sales figures, surpassed only by Toyota and the Volkswagen Group.
The merger is part of a strategy to strengthen competitiveness in a market characterized by increasing demands for electrification and new technologies. The collaboration will enable Nissan, Honda and Mitsubishi to share development costs and technology within platforms and powertrains.
This is reported by the news agency AP, among others.
The three automakers will continue to operate as independent brands, however. This means that Nissan, Honda and Mitsubishi will retain their own identities, models and headquarters, although they will share the same technology to build cars.
One of the benefits of the merger is a common approach to research and development, which will streamline processes and reduce costs. In addition, a single supply chain will mean that the brands can reap billions of kroner in savings.
A key part of the plan is to streamline the vehicle portfolio, including gasoline, hybrid, plug-in hybrid and electric vehicles. By focusing on common platforms, the companies hope to achieve greater flexibility and lower production costs.
According to industry sources, the merger could also help Nissan and Honda adapt to increased competition from new players in the automotive market, especially from Chinese electric car manufacturers. At the same time, the new company could gain a stronger position in markets such as Asia, Europe and North America.
The coming six months will be crucial for whether the deal can be realized. The merger requires approval from the Japanese competition authorities.
Nissan and Honda have previously had limited cooperation. But the merger would represent a significant change in the way they operate. Mitsubishi, already part of Nissan's alliance, could also have a stronger role in the new constellation.
The final decision on the merger is expected by mid-2026 at the latest. The parties involved emphasize that there are still many details that need to be negotiated before the merger can become a reality.
