Honda and Nissan have acknowledged the possibility of a merger, driving an active trading session in Tokyo for the Japanese auto makers.
Peter Wells, professor of business and sustainability at Cardiff Business School's Centre for Automotive Industry Research, discusses the prospect of a Nissan and Honda merger amid reports that the two Japanese automakers are in talks to operate under a holding company.
A merger between Honda and Nissan would not come with quick gains, as the automakers would first need to align their strategies while overlapping regional markets would limit the sales benefits, S&P analysts said on Wednesday.
Top Japanese carmakers Nissan Motor and Honda Motor are understood to be exploring a blockbuster merger, as the two rival companies seek to stay competitive on the road to full electrification. It is thought the prospective tie-up could create the world's third-largest auto group by vehicle sales, with 8 million sales annually, according to Citi.
Renault is open to Nissan pursuing merger talks with Honda as the French automaker seeks way to insulate itself from the crisis plaguing its long-time alliance partner, according to people familiar with the situation. Renault is eager for the Japanese company to find ways to become stronger given it isn't itself willing to inject cash into Nissan, said the people, who asked not to be identified discussing internal matters.
Honda and Nissan are reportedly in early discussions regarding a potential merger, which could reshape Japan's automotive industry. According to Bloomberg, the proposed union aims to strengthen their competitive position globally, particularly against Toyota, the world's largest carmaker.
Japanese carmakers Honda and Nissan are in talks to deepen ties, according to sources, including a possible merger, as challenges from Tesla and Chinese rivals urge a restructuring of Japan's auto industry.
Nissan Motor's shares surged sharply on Wednesday morning after reports emerged that the company had initiated talks for a merger with fellow Japanese carmaker Honda, in a move that intended to help Nissan wade through an ongoing crisis and reportedly allow the Japanese companies to compete better against electric vehicle rivals from China and Tesla.
If only M&A solved everything. Japan's Nissan Motor and Honda Motor certainly need help.
Hang Seng Gains on Beijing Stimulus: Beijing's policy pledges drove the Hang Seng Index higher, with tech and auto stocks leading Wednesday's market gains.
Auto Forecast Solutions' Joseph McCabe discusses the contours of a potential merger deal between Nissan and Honda, and how the global market plays into what's at stake.
Nissan Motor Chief Financial Officer Stephen Ma will be reassigned to head the China business as part of the struggling Japanese automaker's restructuring measures, the Nikkei business daily reported.