The merger is expected to be completed in August 2026, turning these Japanese companies into the world’s third-largest automaker by sales
Honda engine AND Nissan engine signed, this Monday, 23, a agreement of intentions to formally start negotiations for the fusion of the two companies, which is expected to become the third largest automaker in the world in terms of sales. Over the next six months the companies will discuss combining their businesses under a single holding company, with a plan to complete the merger August 2026.
The announcement comes as both Japanese companies are seeking better positioning in the face of the technological transition debate, which is currently reshaping the automotive industry. The expectation is that the deal will help automakers catch up to American Tesla and the Chinese BYD concerning electric vehicles and with advanced software.
The two groups, together with the Mitsubishi enginesof which Nissan is the main shareholder, will attempt to establish a “single holding company” which, if realized, will create the world’s third largest automotive manufacturer.
Japan’s second and third largest automakers join a growing number of traditional auto giants, including General Motors (GM) and the Volkswagenwho are deepening ties to share the financial costs of developing next-generation vehicles.
Unlike the gasoline-powered cars that have defined the industry for much of the last century, more and more vehicles today are equipped with batteries, electric motors and advanced software that enable features such as autonomous driving. /With information from AFP, AP and NYT
Source: Terra
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