It is taking place. Honda and Nissan have signed a memorandum of understanding (MOU) to discover integrating each automakers right into a single new holding firm. If all goes effectively, that firm may launch in 2026. This is what we all know up to now.

For the subsequent few months, a committee established by each manufacturers will take a look at the way to finest implement the merger. That features all the things from standardization of auto platforms to built-in analysis and improvement, manufacturing, suppliers and provide chain wants, finance, effectivity enhancements, and human assets. The present timeline requires a definitive settlement regarding the enterprise integration to be set by June 2025. The deal would wish to cross varied authorities necessities and be accredited by shareholders of each firms, the latter of which is at present scheduled for April 2026.

Picture by: Honda

The 2 firms have been working collectively for nearly a 12 months. An MOU (memorandum of understanding) was signed in March 2024 for a partnership on automobile intelligence and electrification. That was adopted by one other MOU in August to additional broaden and solidify that partnership into different technological areas. 

It is essential to notice that this does not get rid of Honda and Nissan as we all know them. Very like Stellantis, a brand new as-yet unnamed firm can be created, below which each manufacturers would nonetheless preserve their very own identities (albeit with shared elements and platforms). From a inventory perspective, Honda and Nissan can be de-listed on the Tokyo Inventory Change and changed by the brand new holding firm, occurring in late summer season 2026.

In line with similar press releases from each automakers, Honda would maintain a majority position within the new firm’s administration construction.

“As we speak marks a pivotal second as we start discussions on enterprise integration that has the potential to form our future,” stated Nissan CEO Makoto Uchida. “If realized, I consider that by uniting the strengths of each firms, we will ship unparalleled worth to prospects worldwide who recognize our respective manufacturers. Collectively, we will create a novel approach for them to take pleasure in automobiles that neither firm may obtain alone.”

Picture by: Nissan

Curiously absent from the joint press releases are Renault and Mitsubishi. Each firms fashioned a strategic partnership with Nissan approach again in 1999, and Renault is presently Nissan’s essential shareholder. In a really transient announcement, Renault Group acknowledged the brand new MOU and acknowledged it might “take into account all choices based mostly on one of the best curiosity of the Group and its stakeholders.”

Mitsubishi is significantly extra concerned. The corporate introduced it had additionally signed a MOU with Nissan and Honda, however solely to “discover the opportunity of Mitsubishi Motors’ participation, involvement, and synergy sharing” on this new holding firm. A call ought to come by late January 2025.  In November, Nissan introduced it was promoting one-third of its stake in Mitsubishi.

“In an period of change within the automotive trade, the research between Nissan and Honda a few enterprise integration will speed up synergy maximization results, bringing excessive worth additionally to the collaborative companies with Mitsubishi Motors,” stated Mitsubishi CEO Takao Kato. “So as to understand synergies and to make one of the best use of every firm’s strengths, we may even research one of the best type of cooperation.”

If the brand new holding firm passes all obstacles and is accredited by shareholders, it will likely be one of many largest automotive conglomerates on the planet. However issues are nonetheless within the early levels at this level.

“Honda and Nissan are two firms with distinctive strengths, ” stated Honda Director and Consultant Government Officer Toshihiro Mibe. “We’re nonetheless on the stage of beginning our assessment, and we’ve not selected a enterprise integration but, however with a view to discover a course for the opportunity of enterprise integration by the tip of January 2025, we attempt to be the one and solely main firm that creates new mobility worth by way of chemical response that may solely be pushed by way of synthesis of the 2 groups.”