Honda and Nissan, two of Japan’s largest automakers, are expected to announce on Monday their plans to explore a merger through the creation of a joint holding company, with a target to finalize the deal by June 2025. Reports indicate that the merger aims to position the combined entity as the world’s third-largest automaker, trailing only Toyota and Volkswagen in vehicle sales.
This potential consolidation comes as traditional automakers face increasing competition from electric vehicle (EV) manufacturers such as Tesla and rising Chinese brands. Honda, Japan’s second-largest automaker, is currently valued at over $40 billion, while Nissan, ranked third, has a market capitalization of approximately $10 billion.
Following board meetings scheduled for Monday, both companies are expected to hold a joint press conference to provide further details. Mitsubishi Motors, Nissan’s alliance partner, is also anticipated to participate in the announcement.
According to reports, the deal will see the formation of the holding company by August 2026, with its shares slated for listing. Both Honda and Nissan will delist upon the holding company’s establishment. Honda will reportedly dominate the new company’s board, including its leadership positions.
The merger represents a monumental shift in the global automotive industry, comparable to the 2021 merger of Fiat Chrysler Automobiles and PSA Group, which formed Stellantis in a $52 billion deal.
The timing of the merger follows challenges for both companies. Nissan recently announced plans to cut 9,000 jobs and reduce global production capacity by 20% due to falling sales in key markets such as China and the United States. Similarly, Honda has faced weaker earnings driven by sluggish sales in China.
If successful, this merger is expected to reshape the automotive landscape, consolidating the expertise and resources of two of Japan’s most iconic automakers to better compete in a rapidly evolving industry.