It Begins: Honda and Nissan Reportedly Start Merger Talks

Nissan and Honda are reportedly about to begin talks of merging. According to a new Nikkei Asia report, which cites no specific sources, the two will operate under a new holding company, with the specific details to be decided later. The new group will also allegedly look to include Mitsubishi in the future.

Nissan and Honda began working together in March 2024, expanding their partnership in August to include Mitsubishi as the three agreed to develop electric vehicles and software jointly. Nissan owns a 24 percent stake in Mitsubishi.

Neither Nissan nor Honda would confirm the report's allegations to Reuters, telling the publication that the two are "exploring various possibilities for future collaboration, leveraging each other's strengths."

And Nissan certainly needs the help.

This year has not been kind to the Japanese automaker, with the company cutting production of its best-selling vehicle while asking dealers to sell cars at a loss. Late last month, two unnamed executives told the Financial Times that the company only had 12 to 14 months to survive. Nissan recently tapped former Jeep CEO Christian Meunier to serve as chairman of Nissan America.

The automotive industry is facing unprecedented challenges. There's more competition, more change, and less certainty than ever before. Chinese automakers are edging out Western brands in their home market, with some beginning to see real sales gains in Europe and elsewhere. Electrification is another considerable point of disruption, where the industry is chasing Chinese progress, forcing traditional automakers to get creative to stay competitive.