Honda and Nissan Officially Announce Merger Plans... "Holding Company to Be Established in August 2026" (Comprehensive)

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. They aim to reach a final agreement by June next year.

On the same day, both companies held board meetings and decided to start 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. However, they will maintain their respective automobile brands.

As the automotive industry shifts from internal combustion engines to electric vehicles, the merger is seen as a response to falling behind in technological competition with companies like the US-based Tesla and China's BYD. Nissan President Uchida said, "This is a decisive step looking toward the future," adding, "If the business integration is realized, the scale will rank among the top global automobile manufacturers."

Honda President Mibe also stated, "We confirmed that the synergy effect from the integration is greater than expected," and added, "We will not only join forces in four-wheeled vehicles but also integrate two-wheeled businesses and even aviation-related mobility businesses, creating many customer touchpoints."

If the merger is successful, the newly established holding company will surpass South Korea's Hyundai Motor Group to become the world's third-largest automaker. Based on last year's figures, Honda sold 3.98 million vehicles worldwide, ranking seventh globally, while Nissan sold 3.37 million vehicles, ranking eighth. 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 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, where Nissan is the largest shareholder, plans to decide on joining around January next year.