Auto expert Mike Caudill joins “Cavuto: Coast to Coast” to discuss the potential merger between Honda and Nissan and its impact on the brands.
Japanese car manufacturers Nissan and Honda It agreed to consider a merger and set up a joint holding company that would create the world's third-largest automaker.
The two companies said in a statement on Monday that they are looking for sales of $191 billion and operating profit of more than $19 billion through the possible merger.
The companies hope to conclude negotiations in June 2025 and set up a holding company by August 2026, when shares of both companies will be delisted.
The merger talks come as both automakers struggle to compete with the world's biggest electric car makers, including Tesla and Chinese automaker BYD.
What could the merger of Honda and Nissan mean for the auto industry and consumers?
Makoto Uchida (left), director, executive representative, president and CEO of Nissan Motor Co. and Toshihiro Mibe (right), director, president and executive representative of Honda, hold a joint news conference about their merger. (Photo by Reuters/Reuters)
The merger will create the third largest automotive group in the world car sales, Behind Toyota and Volkswagen.
Honda, Japan's second-largest automaker after Toyota, has a market capitalization of more than $40 billion, while third-place Nissan is worth about $10 billion.
“Today is an important moment as we begin discussions on business integration that have the potential to shape our future,” Nissan president, CEO and representative Makoto Uchida said in a statement. “If realized, I believe that by uniting the strengths of both companies, we will be able to deliver unparalleled value to customers around the world who appreciate our respective brands. Together, we can create a unique way for them to Cars to enjoy that no one company could have achieved alone.”
The merger of Honda and Nissan would create the world's third-largest auto group in terms of car sales. (Photo by Reuters/Reuters)
“Creating new mobility value by bringing together the resources, including knowledge, talent and technologies that Honda and Nissan have been developing for many years, is essential to overcome challenging environmental changes,” said Toshihiro Mibe, director and representative of Honda. automotive industry is facing
Mayeb added: Honda and Nissan are two companies with distinct strengths. We are still in the early stages of our review and have not yet decided on the integration of the business, but in order to find a direction for the possibility of business integration by the end of January 2025, we are trying to be the one and only leading company that is worth the new mobility. creates through a chemical reaction that can only be directed through the combination of two teams.”
Honda and Nissan reportedly set to open merger talks amid EV competition: report
Honda and Nissan also agreed to expand their partnership with Mitsubishi Motors. (Reuters photo / Reuters)
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The majority of the board of directors will be holding Appointed by Honda.
The companies have been exploring ways to strengthen their collaboration, including announcing in March that they were exploring partnerships in vehicle electrification and smartness, and in August an agreement to conduct joint research on core technologies for next-generation software platforms. they announced Defined vehicles
They also agreed to expand cooperation with Mitsubishi Motors.
Reuters contributed to this report.