Nissan and Honda in merger talks
Honda and Nissan are looking to merge, with the two companies issuing a joint statement confirming they are in talks.
“Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” the statement issued this week reads.
“If there are any updates, we will inform our stakeholders at the appropriate time.”
Japanese newspaper Nikkei Asia reports a memorandum of understanding is expected to be signed next week.
In March, Nissan and Honda announced a partnership to develop electric vehicle technology and auto intelligence, in the face of increasingly competition from Elon Musk’s Tesla and Chinese manufacturer BYD.
“Emerging players are very aggressive and are making inroads at incredible speed,” Nissan CEO Makoto Uchida told media in April, upon announcing the alliance.
“We cannot win the competition as long as we stick to conventional wisdom and a traditional approach.”
Renault, Nissan’s partner of 25 years, recently announced plans to divest its interest in the Japanese company, with the Financial Times, reporting late last month Nissan was on the hunt for a “long-term, steady shareholder like a bank or insurance group” as Renault looks to untangle itself from an alliance formed in 1999, as the Japanese automaker faced bankruptcy at the turn of the century.
Last year, Renault reduced its 43.3% voting stake in Nissan to 15%, and Nissan took a 15% voting stake in Renault. Nissan also owns 34% of Mitsubishi, which it reportedly plans to reduce to 24% once Renault exits.
“We have 12 or 14 months to survive,” a senior official close to Nissan told the FT, before news of the potential Honda merger was revealed.
“This is going to be tough – and in the end, we need Japan and the US to be generating cash.”
Nissan stock jumped more than 23% upon news of the potential merger.
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Interesting development and I imagine the Japanese government is quietly encouraging this.
Nissan gets Honda’s hybrid engine tech and access to Honda’s in house CVT transmissions (Jatco begone!) while Honda gets a utility/truck platform (Navara, Frontier, XTerra & Titan), a proper ladder frame 4WD platform (Patrol) and the now ancient RWD Z platform.
Both have varying degrees of success in EV with Nissan having the Leaf on sale for a decade now and Honda about to launch their first in house designed EV platform in the coming year.
The enthusiast in me dreams about the classic nameplayes this could bring back. A Civic Type R / GTiR Pulsar co-lab or a RWD Silvia / Integra Type R competitor to the GR86 / BRZ. Not to mention the potential for new halo cars like the NSX or GTR. But in today’s world these would probably all end up being underwhelming EV boxes.
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