It was only a matter of time before one of the legacy car companies got the speed wobbles in the face of EV competition from China. Nissan reported a huge loss recently and is evidently about to discuss its future with Honda executives. It is thought the pair are having merger talks, according to a Nikkei financial report.
The Japanese companies are already working together to co-develop electric vehicle platforms and batteries. The idea is to defray costs in the face of fierce EV market competition.
The two firms may join forces as a single holding company. Mitsubishi Motors, in which Nissan holds a 24 per cent stake, may also be included in the new group.
Nissan and Honda are Japan’s second and third largest car makers. Combined they sold nearly over seven million cars worldwide last year.
According to Reuters, the two firms have released identical statements. Both deny merger talks and that they would inform shareholders of any updates ‘at an appropriate time’.
They said “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.”
Back then, Nissan CEO, Makoto Uchida, said: “Emerging players are very aggressive and making inroads at incredible speed.”
Any future merger would have significant effects on the global car industry. Nissan has been in a long-time platform sharing alliance with Renault. Each firm will produce EVs for the other in the coming years.
In 2020, Honda and Nissan executives evidently had brief talks when relations between Nissan and Renault soured. However, nothing came of these. Perhaps that’s in part because a joint name – Hondan or Nissda – doesn’t exactly have a ring to it.
