Japanese auto giants Honda and Nissan are reviewing the details of a major merger that could create the world’s third-largest automaker as they seek to survive in an industry facing uncertainty.
The shift to electric vehicles, led by Tesla, and China’s growing importance in the auto market have left companies like Honda and Nissan feeling the pressure to compete. If the merger goes through, it could be completed by 2026. Nissan’s partner Mitsubishi will decide whether to join this new alliance by the end of January 2025.
Nissan and Mitsubishi already have a partnership with French automaker Renault, but that relationship is becoming increasingly difficult. This is especially true after former coalition president Carlos Ghosn fled the country after being arrested there on charges of financial misconduct. “As the majority shareholder of Nissan, Renault Group will consider all options based on the best interests of the group and its stakeholders,” a Renault spokesperson said in a statement.
