It's really happening: Honda, Nissan, and Mitsubishi are joining forces to operate together under a single holding company, in a bid to stave off fierce competition around the world.
That's from a joint statement issued by Nissan and Honda, where the two companies announced their partnership – which follows murmurs about the merger heard last week. Nissan also holds a 24.05% stake in Mitsubishi, and previously expressed an intention to bring it into the fold under this new venture.
With that, the trio will together form the world's third largest automaker after Volkswagen AG and Toyota.
Honda and Nissan have been cozying up since March, partnering on tech and research initiatives to catch up with global trends towards zero-emissions and autonomous driving-capable vehicles. The merger is set to be completed by August 2026.
Once that's complete, we can expect to see the three brands share vehicle platforms and launch new models across categories faster. They'll also collaborate more deeply on research and development of new technology, and share production lines and part-sourcing processes to lower manufacturing costs.
It remains to be seen if that gives the new supergroup enough of an edge to compete with younger marques with a wide range of electric vehicle (EV) offerings like Tesla and BYD. While Honda and Nissan aren't lagging in sales in the US just now, their EV portfolios leave a lot to be desired. That doesn't bode well for the near future; it's estimated that EVs will account for 40% of all cars sold globally just five years from now.
Meanwhile, they're not doing great in China – the world's largest market. There's just one Nissan on the top 10 car models sold by volume in November 2024, and nothing from Honda; seven of the other positions on that list are occupied by Tesla and BYD.
The press statement doesn't say much about Mitsubishi's future. We also don't yet know exactly what the partnership will spell for customers' experience. Honda Director and Representative Executive Officer Toshihiro Mibe said: “We are still at the stage of starting our review, and we have not decided on a business integration yet."
What we do know for sure is that Honda and Nissan will continue to operate their brands independently. Nissan Director, President and CEO Makoto Uchida, is optimistic that the merger will lead to compelling new products, saying, "Together, we can create a unique way for them to enjoy cars that neither company could achieve alone."
Source: Honda
