Japanese automotive giants prepping to take on the rise of Chinese EVs.
If the discussions are successful, the Honda-Nissan-Mitsubishi group would create the world’s third-largest automotive group by vehicle sales, after the Toyota and VW conglomerate.
The companies announced in Tokyo on Monday that a memorandum of understanding had been signed, merger negotiations are expected to end by June 2025, and a holding company could be set up by August 2026.
It would be an unprecedented tie-up between the three car makers, intended to pool their resources – and share costs – to fend off competition from China, and catch up to rivals in the electric-car market.
The companies have signed a memorandum of understanding that states cars will continue to be sold under Honda and Nissan brands – as well as their luxury arms Acura and Infiniti which are not offered in Australia.
Carlos Ghosn spoke with Bloomberg TV ahead of the official announcement, declaring that the companies were in “panic mode”.
Acknowledging that employees and fans of the brands may not welcome the development, Mibe defended it by saying traditional hardware such as engines, transmissions and suspension layouts will not define cars in the electric era.
Read More: Mitsubishi may not join the merger.
“Mobility will no longer be differentiated by traditional hardware and will undergo a significant evolution mainly driven by vehicle intelligence and electrification,” he said.
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