IN THE NEWS: Honda, Nissan merger would boost automakers’ global position: analysts

Automotive Dive
January 2, 2025
Larry Avila

FROM THE ARTICLE: The potential merger of Honda Motor Co. and Nissan Motor Corp’s could catapult the two automakers into a stronger global position in the race to deploy new technology and bring electric vehicles to the market faster, experts say.

On Dec. 23, the automakers announced that discussions were underway to create a new holding company that would operate both Honda and Nissan — and potentially include Mitsubishi Motors Corp. However, executives acknowledged several months of talks remain before they can finalize a merger agreement. If successful, the companies aim to list the new holding company on the Tokyo Stock Exchange by August 2026.

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But the joining of the automakers’ global manufacturing, research and development resources makes for a compelling outlook, according to Dorothy Ashford, Vice President, Enterprise Accounts-Automotive, for ITS Logistics. Honda and Nissan are familiar with each other as they are collaborating on next-generation software-defined vehicles and electric vehicles.

“Technology is a foundational element to every automaker’s success, and the companies have already been working together in this space,” Ashford said.

A merger would eliminate operational redundancies, she said. It also could lead the automakers to combine hybrid and BEV initiatives and investments, which would strengthen their position in the marketplace.

Ashford said from a manufacturing and supply chain perspective, Nissan’s manufacturing footprint complements Honda’s, especially in the U.S.

“Tennessee and Mississippi are strong logistics locations in the automotive ecosystem,” she said, where Nissan has operations. “In addition, the best-selling Nissan vehicles complement Honda’s lineup.”

Ashford said a merger could lead to a short-term sales lift and would “put another spotlight on the brands to use as a catalyst for change and spur investor confidence.”

Nissan would initially benefit most from the combination given its recent financial struggles, she said. But overall, a merger would help both companies.

“As a whole for the Japanese automakers and their position globally, it will provide the opportunity to merge the best parts of the companies together and reimagine the Nissan brands,” Ashford said.

Read the full article.