It is reported that Honda and Nissan will discuss a merger. Japanese book Nikkei said the two automakers plan to sign a memorandum of understanding to settle equity stakes in a new holding company for the combined rivals.
The potential merger would combine the assets of Japan’s second- and third-largest automakers, giving them a better shot at competing with the country’s market leader, Toyota. Bloomberg he added that it would put them at a better position against Tesla and Chinese EV makers. Nikkei says Mitsubishi may join the talks later.
At the beginning of the year, Honda and Nissan said that they will cooperate in the development of software, batteries and other EVs. That “merger and compete” deal followed Toyota acquiring stakes in Subaru, Suzuki and Mazda. With today’s news that the two are ready to take the next step, the landscape is clearly looking towards automakers leaving a few (but great) competitors for customers.
The companies have confirmed that they are negotiating with them The New York Times. “As announced in March of this year, Honda and Nissan are looking at different ways to work together in the future, to use each other’s strengths,” they told this newspaper. “We will notify our stakeholders of any updates in due course.”
Bloomberg On Tuesday they also reported that Honda is increasing the production rate of hybrid cars as the demand for electric/gas powered cars is still high outside of China. The automaker aims to double its annual hybrid sales by 2030. “The goal is still to be carbon neutral by 2050, but the demand for hybrids will remain high in the future,” said Honda CEO Katsuto Hayashi on Sunday. “A lot of that growth we’re seeing is happening in North America.”
Speaking of North America, US President-elect Donald Trump is reportedly planning to reverse President Biden’s EV policies. His reform team is said to have recommended ending government support for EVs and charging stations and instead focus on banning cars, components and battery materials from China. Climate scientists have warned that a shift from gas-powered vehicles to electric vehicles is needed to reduce carbon emissions and cut the most catastrophic projections for our planet.
Update, December 17, 2024, 8:46PM ET: This story has been updated to include a statement provided by the companies The New York Times.
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