Nissan-Mitsubishi Will Officially Merge With Honda; Merger Expected To Be Completed In 2026

Recently the executives of Japanese automaker, Nissan announced that the company was on track for bankruptcy. Well to save the company from this financial strain Honda has stood up. Honda and Nissan have today confirmed their plans to team up and this plan includes the Mitsubishi automaker as well.

Well if the talks between these companies turn out to be fruitful then we may see the world’s third-largest automaker by sales. Nissan and Honda have signed a MOU to explore a strategic partnership with Mitsubishi joining the discussion as well. It is said that Mitsubishi is currently evaluating its involvement in the integration and aims to decide by January 2025. Meanwhile, all three companies plan to finalize the discussion by June 2025.

Reportedly, over the next six months, all three automakers will discuss merging their operations under a single holding company to complete the merger and list the shares of the holding company by August 2026. If this goes through then the brands will remain distinct, but they are expected to standardize platforms and powertrains, share R&D, and collaborate on manufacturing. It is believed that this merger plan is basically to enhance competitiveness in the electric vehicle (EV) market and counter the dominance of other rivals like Tesla and Chinese automakers.

The companies expect the merger to generate a profit of 3 trillion yen (19 Billion USD) in a year with combined annual sales of 30 trillion yen.