Nissan and Honda plan to merge
Honda and Nissan have officially confirmed the rumors that they want to join forces. Both will still operate under their own brands but with a new joint parent company. If Nissan-controlled Mitsubishi also entered, the combined group would be the world’s third-largest carmaker, worth up to $50 billion.
Nissan and Honda have previously worked together on EV development, but the combined company will be more integrated. According to a press release, it could include standardizing vehicle platforms, consolidating research and development teams, and improving production systems and facilities. This can help reduce costs.
In the US, Nissan sells large trucks and SUVs that Honda doesn’t offer, as well as more expertise in EVs and electric vehicles. On the other hand, Honda has stable finances while Nissan is struggling, especially at home in Japan.
– Matt Smith
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