It is reported that Japan’s Honda and Nissan companies will start merger negotiations

DETROIT – Japanese automakers Nissan Motor and Honda Motors is reportedly planning to enter merger talks to better compete in the rapidly changing global auto industry. Nikkei newspaper reported on Tuesday.

“Report” reports that “Honda” and “Nissan” are considering operating under the holding company and will soon sign a memorandum of understanding. They also want to subordinate Mitsubishi Motors, in which Nissan is the main shareholder with a 24% share, to the holding..

According to Nikkei, the combined Nissan-Honda-Mitsubishi venture will be equivalent to annual sales of more than 8 million vehicles. That would put the company among the world’s largest automakers, but still fall short of the other Japanese automaker Toyota Motorhour 11.2 mln In 2023, as well as the German automaker Volkswagenreported sales last year 9.2 mln vehicles.

In similar statements, Honda and Nissan neither confirmed nor denied the news: “The reported content was not published by our company,” Honda said. “As announced in March of this year, Honda and Nissan are exploring various opportunities for future collaboration, leveraging each other’s strengths. We will inform our stakeholders of any updates at the appropriate time.”

The merger report comes after the two Japanese automakers entered into a strategic partnership earlier this year involving shared automotive components and software.

Such a merger is the largest auto industry merger since Fiat Chrysler’s merger with France-based PSA Groupe. Star In January 2021.

Automotive consultants and other experts have recently been calling for action increase in mergers and acquisitions to share costs and better compete with rapidly expanding Chinese automakers as well as the US all-electric car leader Tesla.

Honda’s U.S.-traded shares rose nearly 1% on Tuesday. Without a prescription Nissan sharesincreased from 11% in the middle of the restructuring.