Nissan and Honda sign a MoU to explore business integration
Targeting global mobility future
Nissan Motor Company and Honda Motor Company have officially signed a Memorandum of Understanding (MoU), marking the beginning of talks that could lead to a significant business integration between the two Japanese automotive giants.
The potential collaboration would involve creating a joint holding company, combining the strengths of both firms to navigate the rapidly evolving automotive landscape.
The MoU, announced at a news conference in Tokyo on December 23, 2024, follows a series of discussions that started earlier in the year to boost both companies’ efforts toward a carbon-neutral and zero-traffic-fatality society. On March 15, 2024, Nissan and Honda signed an MoU to forge a strategic partnership focused on vehicle intelligence and electrification. This deal laid the groundwork for collaboration across a range of sectors, with both companies agreeing to work together on key technologies to advance the future of mobility.
As the automotive industry continues to face challenges and experience swift technological advancements, the two companies deepened their commitment in August 2024 by signing another MoU. This expanded partnership focused on joint research in next-generation software-defined vehicle (SDV) platforms, emphasising intelligence and electrification.
The latest MoU seeks to provide a framework for business integration, which Nissan and Honda see as crucial for remaining competitive globally. By pooling their resources, including knowledge, human capital, and technological capabilities, the two companies believe they can better adapt to market changes, enhance their ability to deliver innovative products and improve their long-term corporate value.
Boost for Japan
The companies envision a successful integration that could boost Japan’s industrial base and establish the merged entity as a leading global mobility company. The integration would not only combine Nissan’s expertise in four-wheel vehicles with Honda’s dominance in motorcycles and power products. Still, it would also allow the brands to develop more attractive and cutting-edge products for customers worldwide.
Nissan’s Director, President, CEO, and Representative Executive Officer, Makoto Uchida, said: “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If we realise this, 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.”
Honda’s Director and Representative Executive Officer, Toshihiro Mibe, echoed Uchida’s sentiments, stating: “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 the 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. However, we strive to be the leading company that creates new mobility value through synthesising the two teams.”
The companies also highlighted the potential synergies that could arise from the integration. A newly formed integration preparatory committee will oversee the process and conduct in-depth discussions on how best to align the two companies’ operations. As part of the due diligence, Nissan and Honda will explore various opportunities for collaboration, aiming to generate specific synergies that would enhance their market competitiveness.
Nissan and Honda have set an ambitious goal to realise these synergies and, by doing so, potentially become a world-class mobility company with sales revenue exceeding ¥30 trillion and an operating profit of more than ¥3 trillion. This vision underscores the potential impact of their integration, not just for the companies involved but for the global automotive industry as a whole.
If realised, the partnership could lead to groundbreaking advancements in electrification, software-defined vehicles, and sustainable mobility, positioning Nissan and Honda at the forefront of global automotive innovation.
Hero image: The MoU between Nissan and Honda was announced at a news conference in Tokyo on December 23, 2024. Credit: Nissan
