Nissan and Honda confirm merger talks for potential creation of world's third-largest carmaker

Automakers Honda and Nissan are working towards a potential merger to create the world's third-largest automaker by sales. This move follows a lag in electric vehicle production from Japanese automakers compared to their global competitors. A holding company is expected to be established by August 2026. Mitsubishi Motors Corp, a Nissan alliance member, is also in talks to join the merged entity. The merged company aims to have the necessary tools to compete with top automakers by 2030. The merger has been formalized through a memorandum of understanding signed by the presidents of Honda and Nissan, Toshihiro Mibe and Makoto Uchida respectively.

Honda's CEO Toshihiro Mibe has hinted at the possibility of a merger or joint venture with Nissan, which could result in a larger and more competitive automotive group. This potential alliance could provide both companies with greater scale and resources to navigate the turbulent global auto market. Mitsubishi Motors is also reportedly part of the talks, which could lead to the creation of the world's third-largest automaker. The move is seen as a strategic response to the industry's shift towards electric vehicles, as Japanese automakers struggle to adapt to the changing market.