Honda and Nissan Explore Merger to Tackle Auto Industry's Technological Shift

Honda Motor and Nissan Motor have initiated formal talks to explore a merger, creating one of the world's largest automotive groups.

The two Japanese automakers signed a memorandum of understanding on 23.12.2024 to deepen their partnership, with discussions set to continue over the next six months. 

The proposed merger, aiming for completion by August 2026, would involve combining operations under a holding company.

 This move is part of a broader trend among legacy automakers like General Motors and Volkswagen, seeking to share the costs of developing next-generation electric and autonomous vehicles.

The deal is seen as crucial for Nissan, struggling with declining sales and production cuts.