Nissan and Honda are planning a merger
Honda and Nissan have officially confirmed the rumours that they are pursuing a merger. Both will continue to operate under their respective brands, but with a new joint holding company as the parent. If Nissan-controlled Mitsubishi also gets involved, the combined group would become the world’s third-largest carmaker by sales volume, with a net worth of up to $50 billion.
Nissan and Honda before to work together on EV development, but the joint company will be much more integrated. According to the press release, this could include standardizing vehicle platforms, consolidating research and development teams, and optimizing production systems and facilities. This can help keep costs down.
In the US, Nissan sells large pickup trucks and SUVs that Honda doesn’t offer, along with more expertise in EVs and plug-in electric vehicles. On the other hand, Honda has relatively stable financials, while Nissan is struggling, especially at home in Japan.
– Matt Smith
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