While Renault is on its way out, Honda is on its way in to save Nissan, which without help has just one year left to live. The news caused Nissan's stock to rise sharply.
Nissan and Honda are in the process of negotiating a possible merger that could lead to the formation of a new, global automotive giant.
The merger would potentially include Mitsubishi Motors and result in a combined production of around eight million cars annually. If the deal goes through, the new company would become the world's third-largest automaker after Toyota and Volkswagen.
This is reported by Nikkei Asia .
Nissan has faced financial challenges in recent years and announced earlier this year that the company only has resources for one more year without an injection of new capital. Therefore, this merger is seen as a critical opportunity for Nissan.
The company confirmed yesterday that talks are underway regarding "a possible business integration" with Honda. At the same time, various cooperation opportunities are being explored with both Honda and Mitsubishi.
However, no final decisions have been made yet, and the details of the agreement remain secret by the two Japanese car brands.
News of the negotiations has already affected stock markets, with Nissan shares up 23 percent, while Mitsubishi shares rose 19 percent.
Honda shares, however, reacted differently, falling 3 percent, indicating a more cautious assessment from investors.
If the merger becomes a reality, it will not only increase production, but also strengthen the companies' cooperation on technological development.
Honda and Nissan began collaborating earlier this year on software development and component production for vehicles.
A possible merger would thus be able to build on this foundation and create more efficient solutions in an industry characterized by increasing competition and the shift towards sustainable transport.
For both Nissan and Honda, such an alliance could be a step towards maintaining their position in a pressured automotive industry.
For Nissan specifically, it is a chance to secure the company's future and create a more robust platform for growth. However, the success of the merger depends on how the different corporate cultures and strategies are aligned.
While the world awaits an official announcement, both the automotive industry and investors will be closely following developments.
