Honda and Nissan, the second and third largest automobile manufacturers in Japan, have officially announced plans to merge. Their goal is to establish a holding company by August 2026.
Uchida Makoto, President of Nissan Motor Company (left), and Mibe Toshihiro, President of Honda Motor Company. Photo by Yonhap News
According to Yonhap News and major local Japanese media on the 23rd, Honda President Toshihiro Mibe, Nissan President Makoto Uchida, and Mitsubishi Motors President Takao Kato held a press conference in Tokyo to announce their plan to pursue a business integration.
On the same day, both companies held board meetings and decided to begin negotiations to establish a listed holding company in 2026. The representative of the newly established holding company will be appointed from among the directors nominated by Honda. Both companies will become subsidiaries of the holding company and plan to delist their stocks. The negotiations aim for a final agreement by June next year.
If the merger is successful, the new holding company will surpass South Korea's Hyundai Motor Group to become the world's third-largest automaker. Last year, Honda sold 3.98 million vehicles worldwide, ranking 7th globally, while Nissan sold 3.37 million vehicles, ranking 8th. Combined, they sold 7.35 million vehicles, placing them third after Toyota (11.23 million vehicles) and Germany's Volkswagen (9.23 million vehicles). Hyundai Motor Group, previously ranked third with 7.3 million vehicles, will be pushed to fourth place.
Furthermore, the two companies have reportedly left open the possibility of Mitsubishi Motors joining the merger process in the future. Mitsubishi Motors, in which Nissan is the largest shareholder, plans to decide on joining around January next year.
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