Japanese Auto Giants Nissan, Honda Eye Merger, Says Nikkei

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]