BUSINESS
Honda, Nissan in Merger Talks to Form World’s Third-Largest Automaker

Honda and Nissan have officially entered discussions to merge their operations, with Mitsubishi possibly joining the alliance. If the plan, detailed in a memorandum of understanding signed today, materializes, it could position the group as the world’s third-largest automaker by sales volume.
The proposed merger follows financial challenges at Nissan, which has recently taken steps to cut costs. These include merging some Infiniti and Nissan dealerships, downsizing its workforce, and restructuring its organizational setup.
Nissan CEO Makoto Uchida, who also took a 50% pay cut, highlighted the merger as a chance to provide more value to a broader market.“This integration, if realized, will enable us to offer even greater value to a wider customer base,” Uchida shared in a statement.
The talks build on an earlier partnership established this year between Honda and Nissan to co-develop electric vehicles and automotive software. Over the next six months, the companies will evaluate merging under a unified holding company, with plans to finalize the process by August 2026.
Honda CEO Toshihiro Mibe underscored the strategic importance of the collaboration. “In this era of unprecedented transformation in the automotive industry, we believe Mitsubishi Motors’ involvement in these discussions will drive significant social progress. Together, we aim to lead in shaping the future of mobility through this integration,” Mibe remarked.