Nissan and Honda have signed a memorandum of understanding (MoU) to commence discussions on a joint holding company.
An announcement by Honda on 23 December says the MoU is aimed at maintaining global competitiveness and ensuring the two companies continue to deliver.
The announcement also said that the new MoU was signed on the premise of an earlier agreement signed between the two auto giants on vehicle intelligence and electrification.
Joining forces
As the global automobile industry tends towards electric vehicles now more than ever, the partnership between Honda and Nissan is a strategy to ensure that the two companies remain afloat.
If they go through with the arrangement, the two companies will combine resources such as knowledge, human resources, and technologies to boost their overall value.
They will also combine the four-wheel and motorcycle technologies from Nissan and Honda to contribute more innovative products and services to the mobility industry in Japan, making it a bigger hub for automobiles.
Announcing the partnership, Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida said:
“Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Also commenting on the partnership, Honda Director and Representative Executive Officer Toshihiro Mibe said the two companies pooling their resources is essential to ensure they stay on top of the rapidly evolving automobile industry.
“Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
Nissan and Honda will form an integration preparatory committee to oversee the integration discussion, and the two companies will examine and analyze more specific synergies based on the outcome of their discussions.
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