According to Japan’s Nikkei, Nissan and Honda are reportedly negotiating a groundbreaking merger. The automakers are expected to draft a memorandum of understanding outlining plans for a shared equity structure within a newly established holding company.
The merger would unite the resources of Japan’s second—and third-largest car manufacturers, creating a formidable contender against industry giant Toyota. Bloomberg notes that this move could also bolster their standing against Tesla and China’s rapidly expanding EV producers. Speculation is already swirling about Mitsubishi potentially joining these discussions.
Earlier this year, Nissan and Honda announced plans to collaborate on software, batteries, and other EV-related technologies—a strategic partnership aimed at survival in an increasingly competitive market. This “collaborate to compete” philosophy follows Toyota’s strategic acquisitions of stakes in Subaru, Suzuki, and Mazda. With the latest developments, the global auto sector is consolidating into fewer yet more robust players vying for dominance.
The two companies confirmed the talks to The New York Times, stating they are exploring avenues for future collaboration that capitalize on their respective strengths. “We will notify stakeholders of significant updates at the appropriate time,” the automakers assured.
Meanwhile, Bloomberg reported on Tuesday that Honda is ramping up production of hybrid vehicles, targeting a doubling of annual hybrid sales by 2030. Hybrid demand remains robust outside of China, with Honda Chief Officer Katsuto Hayashi emphasizing North America as the key growth market. “While our ultimate goal remains carbon neutrality by 2050, hybrids will dominate the market in the near term,” Hayashi said.
In the United States, the political landscape surrounding EVs is poised for a seismic shift. Reports suggest President-elect Donald Trump plans to undo several EV-friendly policies enacted by President Biden. His transition team has proposed eliminating federal support for EV purchases and charging infrastructure, instead advocating measures to curtail the import of cars, components, and battery materials from China.
Environmental experts continue to stress the urgency of transitioning from fossil fuels to electric vehicles. They warn that without this shift, the world faces escalating carbon emissions and the grim specter of catastrophic climate outcomes.
