TOKYO (AP) — Japanese automakers Honda and Nissan announced plans Thursday to merge by 2026, creating the world’s third-largest car manufacturer through a deal that would fundamentally reshape the global automotive landscape.
The merger, led by Honda due to its larger market capitalization, aims to strengthen both companies’ positions in electrification and software development. The companies expect to finalize the agreement by June 2025 and establish a new holding company by August 2026.
“By uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide,” said Nissan President and CEO Makoto Uchida. The merger follows earlier collaborations between the companies on software and electrification initiatives.
Honda Director Toshihiro Mibe cautioned that major benefits wouldn’t materialize until after 2030, though cost savings are expected through combined purchasing power and shared development expenses.
The deal could significantly impact Nissan’s existing alliance with France’s Renault and Japan’s Mitsubishi. Renault, which holds a 15% stake in Nissan, said it would “consider all options based on the best interest of the Group and its stakeholders.” Mitsubishi indicated it would evaluate joining the merger at a later date.
The announcement comes after Nissan’s recent $663 million investment in Renault’s electric vehicle operations and the restructuring of their alliance following the 2019 arrest of former chief Carlos Ghosn.
Both automakers plan to maintain existing partnerships, including Honda’s collaboration with General Motors. The merged entity will seek efficiencies through shared vehicle platforms, research and development, manufacturing facilities, and integrated supply chains.
“Creation of new mobility value by bringing together resources is essential to overcome challenging environmental shifts that the auto industry is facing,” Mibe said, emphasizing the merger’s focus on future mobility solutions.
The companies will work to optimize manufacturing operations and integrate sales financing while maintaining their distinct brand identities. Deeper cooperation at the R&D stage is expected to accelerate technological innovation and reduce costs.
