Japanese mega corporations Honda and Nissan are looking at a potential merger, with negotiations reportedly set to begin in the near future.The two companies reportedly are looking at ways to remain competitive in the fast-paced car industry and burgeoning electric vehicle (EV) market. Local newspaper Nikkei reported on Tuesday that the two companies are discussing the possibility of operating under a holding company. A memorandum of understanding between Honda and Nissan is expected to be produced. Only a couple weeks ago it was reported Nissan is on the brink of collapse with just 12 months remaining to alter course, said the Daily Mail.According to insiders, Nissan is struggling to stay competitive with rivals that have achieved greater success with hybrid vehicles, reported the Mail.Amid the announcement, US Honda trading shares jumped about 2%, reported CNBC, while Nissan over-the-counter shares (which means not listed on formal exchanges) leapt more than 11%. Honda and Nissan won’t stop their merger there. Eventually they plan to include Mitsubishi. Nissan already is the top shareholder with a 24% stake. Nikkei reported the combined Nissan-Honda-Mitsubishi enterprise would account for eight million annual vehicle sales, making the would-be conglomerate among the top automobile sellers in the world. Toyota Motor, with 11.2 million sales in 2023, and Volkswagen, with 9.2 million vehicles sold last year would still be the top global sellers. “The reported content was not released by our company,” Honda told CNBC, before expounding on the potential “collaboration.” “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths. We will inform our stakeholders of any updates at an appropriate time.”
