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Honda Motor Co. and Nissan Motor Co. are looking to finalize a merger agreement as soon as June after negotiations begin later Monday, and may combine in 2026, Japanese media reported, citing unidentified sources.
The two automakers plan to create a holding company that would be helmed by a president picked by Honda, Japanese broadcaster NHK said. A press briefing is expected Monday afternoon after the companies hold board meetings.
The presidents of Honda, Nissan and Mitsubishi Motor Corp. 0— Nissan’s junior partner — were seen entering and leaving Japan’s transportation ministry on Monday morning, likely to inform officials of their plans to formally kick off merger talks.
The executives didn’t respond to requests for comment as they were leaving, and spokespeople for Nissan and Honda declined to comment.
Shares in Nissan slipped as much as 2.6%, bringing declines for the year to around 21%. Stock in Honda was trading 2.1% higher. It’s down 14.4% since January.
Honda and Nissan are both facing significant challenges, with the latter in dire financial straits as a deluge of electric and hybrid vehicles from competitors in China forces legacy brands to pool resources.
Nissan is in greater need of a turnaround due to cratering sales in the US and China, which have forced it to slash jobs, cut production capacity and lower annual profit outlook by 70%.
An alliance between Honda and Nissan — which could also include Nissan’s junior partner Mitsubishi Motors — would effectively split Japan’s automobile industry down the middle, pitting the trio against Toyota Motor Corp. and its partnerships with Mazda Motor Corp., Subaru Corp. and Suzuki Motor Corp.
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