Nissan and Honda plan to merge


Honda and Nissan have officially confirmed rumors that they are pursuing a merger. Both companies will continue to operate under their respective brands, but with a new joint holding company as the parent company. If Nissan-controlled Mitsubishi also joined the company, the combined group would become the world's third-largest automaker by sales, with a net worth of up to $50 billion.

Nissan and Honda previously work together to develop electric vehicles, but the joint company will be much more integrated. This could include standardizing vehicle platforms, consolidating research and development teams, and optimizing production systems and equipment, according to the press release. This can help reduce costs.

In the U.S., Nissan sells large pickup trucks and SUVs that Honda doesn't offer, and also has more experience making electric vehicles and EVs. On the other hand, Honda has relatively stable financials, while Nissan is struggling, especially at home in Japan.

— Mat Smith

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