Honda and Nissan have focused their major merger on ‘exploration and electrification’

Japanese auto giants Honda and Nissan are working on the details great combination can create the world the third largest car manufactureras companies try to survive in an industry facing uncertainty.

Tesla’s shift to electric vehicles and China’s growing importance in the auto market have companies such as Honda and Nissan feeling competitive pressure. If they achieve the merger, it could be completed by 2026. Nissan’s partner Mitsubishi has until the end of January 2025 to decide whether to join this new alliance.

Nissan and Mitsubishi are already partners with French carmaker Renault, although that relationship has become increasingly strained – particularly since the alliance’s former chairman, Carlos Ghosn, was arrested in Japan. allegations of financial misconduct and then fled the country. “As Nissan’s major shareholder, Groupe Renault will consider all options based on the interests of the Group and its stakeholders,” a Renault spokesperson said in a statement.