The car industry is a ruthless business, and Nissan knows this all too well. Lately, they’ve faced significant challenges, from job cuts and production slowdowns, to selling off a portion of their Mitsubishi shares. But a potential merger with Honda could be the lifeline they need.
This isn’t something that was decided overnight. Earlier this year, Honda and Nissan has already announced a partnership on electric vehicle (EV) and artificial intelligence (AI) development. But the potential merger, first reported by Nikkei Asia, could signal at a significantly more far-reaching collaboration between the two marques.
This potential partnership appears to be a strategic move by Japan’s second and third-largest carmakers to counter the growing influence of Chinese automakers in the global market. A report from Reuters suggests this merger would involve creating a new umbrella company overseeing both brands, similar to Stellantis.
This raises questions about the future of the Renault-Nissan-Mitsubishi Alliance. Interestingly, the report indicates that Honda and Nissan intend to bring Mitsubishi into the fold, capitalising on Nissan’s significant stake in the company.
RELATED: Nissan and Honda mull partnership on EV and AI, in response to Chinese dominance
If this merger materialises, it would create Japan’s second-largest car conglomerate, second only to Toyota, which also has stakes in Subaru, Mazda, and Suzuki.
This potential shift comes at a pivotal time for the Japanese car industry. Companies like Toyota, for instance, have been hesitant to fully embrace EVs, opting instead for a multi-pathway approach that includes a heavy focus on hybrids. However, the increasingly competitive landscape, particularly in China, is forcing a reassessment of strategies.
Despite combined global sales of 7.4 million vehicles in 2023, Honda and Nissan are under pressure to adapt. They’ve been losing ground in China to domestic EV manufacturers like BYD, highlighting the need for a new approach.
Nissan’s revised Ambition 2030 strategy, announced in February last year, outlines plans to release 19 new EVs by 2030, as part of a broader rollout of 27 new electrified models. Honda’s roadmap is even more ambitious, targeting 30 EVs by 2030, with the goal of becoming fully electric by 2040.
The future of this potential merger remains uncertain. However, the prospect of a future Nissan GT-R infused with Honda’s VTEC technology and Mitsubishi’s renowned all-wheel-drive system is an exciting possibility. Only time will tell what this potential shake-up holds for the Japanese automotive industry.
ALSO READ: Sacrilege or genius? Nissan turns R32 Skyline GT-R electric for Tokyo Auto Salon 2025
