Nissan, Honda, And Mitsubishi Set To Join Forces, Will Merge By 2025

According to the manufacturers, the merger is aimed to be finalised by June 2025, while shares for the holdings company will be listed by August 2026

The three Japanese automotive giants—Honda, Nissan, and Mitsubishi—have signed a memorandum of understanding (MoU) to begin discussions on a potential business integration. Long-standing rumors about merger talks between Honda and Nissan have now been confirmed by the automakers themselves, with Mitsubishi also coming in to partner with these brands. 

Important Timelines For This Business Integration

While talks have officially started, the Honda-Nissan-Mitsubishi merger is expected to be finalized by June 2025. Post the signing of the merger, these three brands will be listed under a joint holding company, which is yet to be named. Shares of the new joint holding company will undergo a technical listing on the Tokyo Stock Exchange’s Prime Market, with the listing planned for August 2026.

What To Expect From This Merger?

Honda, Nissan, and Mitsubishi plan to join forces to strengthen their global competitiveness and continue offering more appealing products and services to customers worldwide. The companies expect the merger to generate a profit of 3 trillion yen (19 Billion USD) in a year, making it one of the largest automotive forces globally.

Here are some of the potential outcomes of the Honda-Nissan-Mitsubishi merger:

Standisation Of Platforms

The vehicle platforms will be shared between all the three brands, which will allow the companies to reduce development costs per vehicle, including future digital services, helping them maximize their profits. The standardisation will apply to all types of models including ICE, HEV, PHEV, and EV.

Enhancement of Development Capabilities

On August 1, 2024, Nissan and Honda signed an MoU to collaborate on research for next-generation software-defined vehicle platforms. After the business integration, both companies will focus more on integrated collaboration across all R&D functions. 

Optimizing Manufacturing Systems And Facilities

The manufacturers also aim to optimise manufacturing processes of their vehicles by shared use of production lines, which will result in a substantial improvement in capacity utilization leading to a decrease in fixed costs and better efficiency.

Competitive Advantages Across The Supply Chain 

Intend to boost their competitiveness by improving and streamlining purchasing operations and source common parts from the same supply chain and in collaboration with business partners.

Integration In Sales Finance Functions

The companies aim to integrate their sales finance functions and expand operations to deliver comprehensive mobility solutions and new financial services.

Establishment Of A Talent Foundation For Intelligence And Electrification

Increased employee exchanges and technical collaboration between the companies are expected to promote further skill development in order to work on future mobility technologies.

What are your thoughts on the merger of these three big Japanese car manufacturers? Comment below.

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