Honda and Nissan are reportedly set to discuss a merger. The Japanese publication Nikkei said the two automakers plan to sign a memorandum of understanding to sort out shared equity stakes in a new holding company for the consolidated rivals.
The potential merger would combine the assets of Japan’s second- and third-biggest automakers, giving them a better shot of competing with the nation’s market leader, Toyota. Bloomberg adds that it would also put them in a better position against Tesla and Chinese EV makers. Nikkei says Mitsubishi could join the talks later.
Earlier this year, Honda and Nissan said they would work together on software development, batteries and other EV components. That “combine-and-compete” alliance followed Toyota’s acquisition of stakes in Subaru, Suzuki and Mazda. With today’s news that the pair are ready to take the next step, the landscape is clearly heading toward fewer (but bigger) legacy automakers competing for customers.
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