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Two of the biggest automobile brands might become one. Nissan and Honda have confirmed they are considering a merger.
As spotted on The Verge, the automotive industry might be heading towards a big shake-up. For months, there have been rumors surrounding a potential joining of forces between the two popular carmakers. On Monday, Dec. 23, Nissan and Honda confirmed the speculation via a formal announcement. “Nissan Motor Co., Ltd. (“Nissan”) and Honda Motor Co., Ltd. (“Honda”) have signed a memorandum of understanding (MOU) to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company,” the press release reads.
While both brands are framing this as an opportunity to “achieving a carbon-neutral society and a zero-traffic-fatality society” many insiders are calling this an attempt at saving Nissan. Over the years Nissan’s market share continued to suffer. Earlier this year, Nissan saw its earnings fall by almost 90% compared to its 2023 performance. Former Nissan executive Carlos Ghosn exclusively tells Bloomberg News this is a “desperate move” by the car maker. He also thinks the overall merger is far from prudent as “the synergies between the two companies are difficult to find.”
“Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone,” Nissan Director, President, CEO, and Representative Executive Officer Makoto Uchida said in a statement.
The goal for both brands is to enter a formal merger agreement by June 2025 and finalize the deal by August 2026.
See how social media is reacting to the merger below.