Honda and Nissan Join Forces to Reshape Global Auto Industry

In a landmark move for the global automotive sector, Honda and Nissan are expected to announce a merger agreement on Monday to form a joint holding company by June 2025. This strategic alliance will create the world’s third-largest automaker, trailing only Toyota and Volkswagen in global vehicle sales.

The merger comes as traditional carmakers face mounting pressure from Tesla and Chinese brands like BYD. Honda, with a market value of $40 billion, will hold a majority stake in the holding company, which will also include Mitsubishi Motors, pushing the group’s annual global sales to over 8 million vehicles.

The announcement follows months of deliberations between the companies, which had already begun exploring cooperation on electrification and software development. Both automakers have struggled in key markets like China, where local electric and hybrid car brands are rapidly gaining ground.

Despite the optimism surrounding the merger, former Nissan Chairman Carlos Ghosn expressed doubts about its success, citing a lack of complementarity between the two companies. However, analysts see the move as a pivotal step to address growing challenges in the industry.