TOKYO: Honda and Nissan are in discussions to strengthen their collaboration by possibly producing vehicles in each other's factories. According to a report from news agency Kyodo on Saturday, December 21, these talks could also involve Honda supplying hybrid vehicles to Nissan. While the sources of the information remain unnamed, the collaboration could lead to a merger between the two companies, potentially reshaping the global automotive landscape.
If the merger proceeds, it would form the world’s third-largest carmaker by vehicle sales, right behind Toyota and Volkswagen. Combined, the two companies could produce up to 7.4 million vehicles annually, signaling a significant shift in the automotive industry.
A Honda spokesperson confirmed the ongoing cooperation with Nissan and Mitsubishi Motors, but emphasized that no decisions have been made yet. Meanwhile, Nissan has yet to comment on the news. The company is also the largest shareholder in Mitsubishi Motors, which plays a key role in their broader strategic efforts.
The two automakers began a strategic partnership in March, with a focus on developing electric vehicles. However, recent financial and strategic challenges have put pressure on Nissan, prompting the company to consider deeper collaborations.
Reports also suggest that Honda might utilize Nissan’s UK-based car factories, given that Honda currently only operates engine and motorcycle facilities in Europe. The potential partnership also comes at a time when concerns over global manufacturing shifts, particularly in the wake of President-elect Donald Trump’s policies, are growing.
This potential alliance could significantly enhance both companies' competitiveness, especially as they navigate the evolving global automotive market.
About Nissan Motors Nissan Motor Co., Ltd. is a Japanese multinational automobile manufacturer headquartered in Yokohama, Japan. Founded in 1933, Nissan has grown to become one of the world's largest automakers, with a global presence in over 160 countries. The company's portfolio includes a diverse range of vehicles, from compact cars like the Nissan Micra to luxury models like the Infiniti Q50.
About Honda Motors
Honda Motor Co., Ltd. is also a Japanese public multinational conglomerate corporation primarily known for its automotive and motorcycle manufacturing. Founded in 1948 by Soichiro Honda and Takeo Fujisawa, Honda has evolved into a global leader in the automotive industry, with operations in over 160 countries. The company's product lineup spans a wide range of vehicles, including compact cars like the Honda Civic, SUVs like the CR-V, and luxury models like the Acura NSX.