Remember when the NBA and the world grasped on their chairs during the famed 'The Decision' of LeBron James which resulted in one of the biggest trades in the franchise's history that formed the superteam? Well, Nissan and Honda previously made their plans public earlier this year, but in this latest development, the pair already signed a memorandum of understanding (MOU) towards a possible merged future.
With this planned merger, the top Japanese car titans will lead to creating the third-largest automotive company in the world, and they also have Nissan alliance member, Mitsubishi Motors, also looking to join the deal to form this new auto superteam.
Nissan, Honda Now In Talks of Merger Amidst EV Market Woes
According to the latest developments from Honda, the company, along with its fellow Japanese brand, Nissan, have already signed their memorandum of understanding (MOU) that slowly forms their joint venture in the present car market. Both companies will now start their talks and discuss their considerations in this latest business integration that would benefit their current struggles.
Earlier this year, both companies also signed an MOU which first centered on a strategic partnership between both companies to help each other advance in this era of electrification, as well as advanced vehicle technologies.
According to Honda Director and Representative Executive Officer, Toshiro Mibe, "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."
Mitsubishi to Also Join on Creating 3rd Largest Auto Company
Also part of this deal is Mitsubishi Motors who is looking to join the deal, making this a three-way collaboration among the three companies, and their venture would lead to a joint holding company representing their best interests towards clean energy. In this three-way deal, Honda, Nissan, and Mitsubishi will form the third-largest car company in the world, following Toyota and Volkswagen.
Japanese Car Brands Are Struggling Amidst EV Rise
Electric vehicles saw a massive rise in the world as many countries are already mandating the shift towards clean energy transportation which is currently changing the landscape of the automotive world. While American and European brands are thriving, the Japanese are facing significant challenges in this massive shift, with Honda previously forced to cut 900 jobs in China after facing an 18.5 percent drop in the region.
Nissan is one of the better-known brands in the market regarding electric vehicles with the company's success with the budget EV, Leaf, but the car was not enough to save the company from facing hardships in the market. Earlier this year, Nissan had to delay its plans to produce more vehicles in its Mississippi factory as it faced slow demand growth in the market.
Because of these struggles faced individually by the renowned car brands from the Land of the Rising Sun, both announced earlier this year that they are planning to merge and create a new joint venture towards advancing EVs. There are no concrete plans yet as both companies, in addition to Mitsubishi, are still in their talks, but Nissan and Honda already signed their memorandum that could eventually lead to the third-largest car company in the world.
