TOKYO, Dec 19 (NNN-NHK) – Major Japanese carmakers Honda Motor and Nissan Motor, will enter negotiations towards a merger, joining their resources to face fierce foreign competition in a rapidly changing automobile industry, local media reported, yesterday.
Japan’s second and third largest automakers are considering operating under a holding company, and soon will sign a memorandum of understanding, Nikkei Asia said, citing sources close to the matter.
Their respective stakes in the new entity, as well as other details, will be decided later.
The report also said that, Mitsubishi Motors, in which Nissan is the top shareholder, might join the grouping, forming the world’s third-largest auto group with combined sales reaching around eight million vehicles.
Nissan, Honda and Mitsubishi confirmed the report in nearly identically worded statements released later in the day, saying, they are considering a number of options including the plan mentioned in the press reports.
Nissan said that, it is considering various aspects of future collaboration with Honda and Mitsubishi Motor, “but nothing has been decided at this time.”
Honda and Nissan agreed in March this year, to commence a feasibility study on a strategic partnership in EV production and software technologies, to cut costs and improve competitiveness, with Mitsubishi Motors joining the talks in Aug, according to Nikkei Asia.– NNN-NHK
