Core Viewpoint - Honda Motor and Nissan Motor are reportedly in the process of merging their companies to better compete with leading global electric vehicle manufacturers like Tesla and BYD [1][4] Company Overview - Honda and Nissan are the second and third-largest auto manufacturers in Japan, with market capitalizations of approximately 5.95 trillion yen ($38.8 billion) and 1.17 trillion yen ($7.6 billion), respectively [2] Current Challenges - Both companies are struggling to compete with global EV makers, leading to significant operational changes [4] - Nissan recently cut its global workforce by 9,000, reducing its global production capacity by 20% [3][4] - Nissan's restructuring plan aims to achieve "healthy growth" by reducing fixed costs by 300 billion yen (around $1.9 billion) and variable costs by 100 billion yen (roughly $649 million) [5] Strategic Measures - Nissan is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development [6]

Core Viewpoint - Japanese automakers Honda Motor Co. and Nissan Motor Co. are considering a merger to enhance their competitiveness against foreign electric vehicle manufacturers like Tesla and BYD [1][2]. Group 1: Merger Negotiations - Honda and Nissan are reportedly entering merger negotiations, which could lead to the formation of a holding company [2]. - This potential merger would create one of the largest automotive companies globally, positioning them better in the competitive landscape [2]. Group 2: Competitive Landscape - The move is primarily driven by the need to compete more effectively against established foreign electric vehicle makers, particularly Tesla and China's BYD [1].

Core Viewpoint - Nissan and Honda are exploring a merger to enhance their competitiveness in the electric vehicle (EV) market, responding to challenges posed by Tesla and Chinese manufacturers [1][2][4]. Group 1: Merger Considerations - The potential merger aims to strengthen the existing ties between Nissan and Honda, allowing them to pool resources and increase their market power [1][2]. - Both companies have confirmed they are in negotiations regarding the merger, marking a significant shift from their previous rivalry [2][5]. Group 2: Market Reaction - Following the news of the merger discussions, Nissan's stock surged nearly 22% on Tuesday, although it later settled at an 11% gain after hours [3]. - In contrast, Honda's shares experienced a decline of approximately 1.3% after the merger news was confirmed [5]. Group 3: Context and Background - The merger talks come in the wake of Nissan's struggles with falling profits and a significant workforce reduction of 9,000 jobs globally in November [3]. - Earlier in the year, Honda and Nissan had already agreed to collaborate on EV batteries and software, indicating a move towards greater cooperation [4]. - Nissan's CEO, Makoto Uchida, acknowledged the need for partnerships to enhance competitiveness, highlighting the limitations of going it alone in the current market [5].

In an aerial view, brand new Honda cars are displayed on the sales lot at Honda Marin on February 06, 2024 in San Rafael, California. Honda announced the recall of 750,000 vehicles in the U.S. for an air bag defect that could unintentionally deploy the air bags in a collision.Honda Motor shares fell 2% on Wednesday following a media report that the Japanese automaker is looking to merge with Nissan Motor.Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of u ...

Group 1 - Honda and Nissan are planning to begin negotiations for a possible merger, which could also involve Mitsubishi Motors, creating a larger competitor to Toyota in Japan [1][2] - The companies aim to sign a memorandum of understanding to negotiate shared equity in a holding company for the combined automaker [2] - Honda, Nissan, and Mitsubishi sold a total of 3.7 million vehicles in the six months ending September 30, compared to Toyota's 4.5 million [3] Group 2 - The partnership between Honda and Nissan regarding electric vehicles was established in March, with Mitsubishi joining in August [3] - U.S.-traded shares of Nissan increased significantly, while Honda's shares saw a slight rise following the news [3] - Company spokespeople indicated that Honda and Nissan are exploring various collaboration possibilities to leverage each other's strengths [3]

Core Viewpoint - Nissan Motor Co Ltd and Honda Motor Co Ltd are reportedly negotiating a merger to consolidate under a holding company, potentially including Mitsubishi Motors, aiming to create a group with over eight million annual vehicle sales, positioning it among the largest automakers [1][2] Group 1: Merger Negotiations - The merger discussions were first reported by the Nikkei newspaper, indicating a strategic move to enhance competitiveness in the automotive market [1] - Nissan and Honda have not confirmed the merger but are exploring collaborative opportunities, having previously partnered on shared components and software [2] Group 2: Market Position and Sales - The combined Nissan-Honda-Mitsubishi group could achieve over eight million annual vehicle sales, which would place it behind Toyota's 11.2 million and Volkswagen's 9.2 million [1] - The merger talks come as Nissan faces challenges, including weak profitability and recovery from the fallout of former Chairman Carlos Ghosn's ouster in 2018 [2] Group 3: Stock Market Reaction - Following the news of the merger talks, Honda's U.S.-traded shares rose by 0.96% to $25.26, while Nissan's over-the-counter shares jumped by 11.46% to $5.11 at market close [3]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Makoto Uchida, president and CEO of Nissan Motor, and Toshihiro Mibe, Honda Motor president and CEO, attend their joint press conference in Tokyo, Japan March 15, 2024.DETROIT — Japanese automakers Nissan Motor and Honda Motor reportedly plan to enter into negotiations for a merger to better compete in the rapidly changing global automotive industry, the Nikkei newspaper reported on Tuesday.Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding, ...

In Brief Honda Motor Co. will stop funding a joint venture with General Motors and Cruise to launch a robotaxi service in Japan, now that GM has pulled the plug on Cruise and its commercial robotaxi ambitions, reports The Nikkei.GM said Tuesday it would cease funding Cruise and instead absorb the company and combine it with its own efforts to develop personal autonomous vehicles.  While GM owns 90% of Cruise, Honda holds a small minority stake alongside other investors like T. Rowe Price and Microsoft. GM ...

Honda is recalling nearly 206,000 Passport and Pilot vehicles that could potentially experience a fuel leak. The automaker announced the move on Thursday, saying the affected 2023-2024 Passport and 2023-2025 Pilot sport utility vehicles “may have an incomplete connection between the fuel filler neck tube and fuel filler pipe that could cause the two components to separate in a crash, allowing fuel to leak and increasing the risk of fire or injury.”Per a National Highway Traffic Safety Administration recall ...