A memorandum of understanding (MOU) has been signed by Nissan Motor Co., Ltd. (“Nissan”) and Honda Motor Co., Ltd. (“Honda”) in order to begin talks and considerations regarding a business merger between the two businesses through the creation of a joint holding company.
A memorandum of understanding (MOU) has been signed by Nissan Motor Co., Ltd. (“Nissan”) and Honda Motor Co., Ltd. (“Honda”) in order to begin talks and considerations regarding a business merger between the two businesses through the creation of a joint holding company.
To strengthen the foundation of the strategic cooperation, the businesses inked an additional MOU on August 1. In order to move targeted talks toward more tangible cooperation, the companies also declared that they had decided to conduct cooperative research in basic technologies related to platforms for next-generation software-defined vehicles, especially in the areas essential for electrification and intelligence.
Throughout the process, Nissan and Honda have discussed a variety of options and possibilities. Technical innovation has continued to accelerate at the same time that the commercial environment for both companies and the broader automotive industry has experienced substantial upheaval. The MOU between Nissan and Honda, which was unveiled today, intends to give both companies a way to stay competitive on a worldwide scale.
If the business integration can be realized, both companies can aim to integrate their respective management resources such as knowledge, human resources, and technologies; create deeper synergies; enhance the ability to respond to market changes; and expect to improve mid- to long term corporate value. Additionally, Nissan and Honda can aim to further contribute to the development of Japan’s industrial base as a “leading global mobility company” by integrating Nissan and Honda’s four-wheel-vehicle and Honda’s motorcycle and power products businesses, continue to make the brands of both companies more attractive and deliver more attractive and innovative products and services to customers worldwide.
Marking the announcement, Nissan 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 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.”
Honda Director and Representative Executive Officer Toshihiro Mibe said: “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.”
