Nissan CEO Makoto Uchida with Honda CEO Toshihiro Mibe at a press conference in March. | Image: Honda
Japanese automakers Honda and Nissan are in talks to merge to better compete with electric vehicle manufacturers like Tesla, BYD, and others. As reported by Nikkei Asia, the two have discussed signing a memorandum of understanding that outlines plans to split equity into a new holding company from which both will do business, according to anonymous sources.
Both Honda and Nissan are also discussing a plan to pull Mitsubishi into the party, which would be akin to how various Japanese electronics brands banded together — such as Konica Minolta, JVCKenwood, and others. Honda and Nissan were already working together to develop EV technology and software and had invited Mitsubishi to that party as well.
Of the two companies, it’s Nissan that’s really in trouble and reportedly will only survive another year unless another company (Honda) swoops in to buy Nissan shares. According the Reuters, Nissan’s net earnings in the middle of 2024 were down more than 90 percent year over year, and it had to cut its annual operating profit forecast by nearly 70 percent. Nissan and Honda relased statements to Reuters saying:
As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.
EV market growth has slowed worldwide, but Chinese brands are outpacing US, European, and Japanese manufacturers. According to Bloomberg, Japanese automakers are losing big market share in east and southeast Asia from China to Indonesia.
Honda is preparing to launch its new Honda Zero EV platform next year and is finding some success in the US with its GM-based electric Prologue SUV. Meanwhile Nissan had fumbled its early pioneering lead with the 2011 Leaf and has only released one other EV, the Ariya.
Both companies, along with domestic competitor Toyota, have added more hybrid models than full EVs to their product roadmaps. This year Nissan said it would have 16 “electrified” models by 2026, and Honda is looking to launch a really cool hybrid Prelude sports coupe next year.