Japanese Auto Giants Plan to Unite

In a strategic move to enhance their competitive edge against larger global electric vehicle manufacturers, Japanese automotive leaders Honda Motor and Nissan Motor have reportedly begun merger discussions, according to the Nikkei newspaper.

The two companies aim to operate under a unified holding company and are anticipated to sign a memorandum of understanding soon for their newly merged entity.

Strengthening Against Global Competition

This strategic alliance comes at a time when traditional automakers are feeling the pressure from the increasing competitiveness of Chinese EV makers, making it difficult for legacy brands to generate sufficient profits from their electrified ventures.

Potential Expansion with Mitsubishi Motors

Additionally, Honda and Nissan are considering bringing Mitsubishi Motors, of which Nissan holds a 24% stake, under the holding company's umbrella. This move could potentially create one of the world's largest automotive groups.

Exact details regarding the stakes of the two companies in the new entity and other specifics are expected to be determined at a later stage, according to the Nikkei report.