Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
Honda and Nissan are reportedly close to discussing a merger. The Japanese publication Nikkei saying The two automakers plan to sign a memorandum of understanding to resolve shared equity stakes in a new holding company for the established rivals.
The potential merger would combine the assets of Japan’s second and third largest automakers, giving them a better chance to compete with domestic market leader Toyota. Bloomberg add which would also put them in a better position against Tesla and Chinese electric vehicle manufacturers. Nikkei says Mitsubishi could join the talks later.
Earlier this year, Honda and Nissan saying They would work together on developing software, batteries and other electric vehicle components. That “match and compete” alliance followed Toyota’s acquisition of stakes in subaru, suzuki and mazda. With today’s news that the pair are ready to take the next step, the landscape is clearly moving towards fewer (but larger) legacy automakers competing for customers.
The companies confirmed that they are in talks to The New York Times. “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” they told the publication. “We will inform our stakeholders of any updates at the appropriate time.”
Bloomberg also reported Tuesday that Honda is increasing production of hybrid vehicles as demand for electric/gas vehicles remains high outside of China. The automaker aims to double its annual sales of hybrids by 2030. “The goal remains to become carbon neutral by 2050, but demand for hybrids will remain high for the foreseeable future,” Honda’s CEO said Sunday , Katsuto Hayashi. “We see most of that growth happening in North America.”
Speaking of North America, US President-elect Donald Trump is reportedly planning to reverse President Biden’s electric vehicle policies. His transition team is said to have recommended ending government support for electric vehicles and charging stations and instead focusing on blocking cars, components and battery materials from China. Climate scientists have warned that the transition from gasoline-powered vehicles to electric vehicles is necessary to reduce carbon emissions and avoid the most catastrophic projections for our planet.
Update, December 17, 2024, 8:46 pm ET: This story has been updated to add a statement the companies had provided to The New York Times.
