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Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. have signed a memorandum of understanding (MOU) to explore a business integration through the establishment of a joint holding company. This initiative aims to enhance their global competitiveness and deliver more attractive products and services to customers worldwide.
Key Highlights:
- Strategic Partnership: In March 2024, Nissan and Honda initiated a strategic partnership focusing on vehicle intelligence and electrification.
- Deepening Collaboration: By August 2024, both companies agreed to conduct joint research on next-generation software-defined vehicle platforms, emphasizing intelligence and electrification.
- Business Integration Consideration: The current MOU signifies a move towards integrating management resources, including knowledge, human resources, and technologies, to create deeper synergies and enhance responsiveness to market changes.
The rapidly evolving automotive industry and accelerating technological innovations have prompted Nissan and Honda to consider this integration. If realized, the integration could lead to a combined sales revenue exceeding 30 trillion yen and an operating profit of more than 3 trillion yen.
Makoto Uchida, Nissan’s President and CEO, stated, “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Toshihiro Mibe, Honda’s Director and Representative Executive Officer, commented, “Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing. Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
Potential Synergies from the Business Integration:
- Scale Advantages by Standardizing Vehicle Platforms: Standardizing platforms across various product segments is expected to strengthen products, reduce costs, enhance development efficiencies, and improve profitability.
- Integration of Management Resources: Combining expertise, human resources, and technologies to create deeper synergies and enhance market responsiveness.
- Contribution to Japan’s Industrial Base: Aiming to become a leading global mobility company, contributing to the development of Japan’s industrial base.
Additionally, Mitsubishi Motors Corporation has signed an MOU to explore participation in this integration, potentially amplifying synergies and value creation.
The companies plan to establish an integration preparatory committee to facilitate discussions and aim to conclude considerations by the end of January 2025.
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