Japanese carmakers Nissan and Honda have confirmed plans to merge by August 2026, in a move to maintain global competitiveness and deliver “more attractive” products and services.

The companies announced an MOU was signed on 23 December, but specific details are yet to be determined. Under a provisional plan, they intend to sign a definitive agreement in June 2025, put this for shareholder vote in April 2026 and list the new entity on the Tokyo Stock Exchange in August 2026.

Although the shareholding ratio for the new joint holding company will be determined once the final agreement is achieved, Honda is set to nominate the majority of directors. The new company’s president or ceo will be selected from Honda’s internal and external director nominations, Kallanish reports.

If the integration materialises, the new entity is touted as a “world-class mobility company” with sales revenues of over JPY 30 trillion ($191.57 billion) and operating profit exceeding JPY 3 trillion.

“Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future,” says Nissan ceo Makoto Uchida. “I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”

Potential synergies include scale advantages by standardising vehicle platforms across various segments; enhancement of development capabilities and cost synergies through joint R&D; optimisation of manufacturing systems and facilities decreasing fixed costs; and stronger supply chain advantages through integrated purchasing.

The companies say that by accelerating the mutual complementation of their global vehicle offerings – including internal combustion and electric vehicles models – they will be better positioned to meet diverse customer needs around the world. 

Creating a new mobility value is “essential to overcome challenging environmental shifts that the auto industry is facing,” emphasises Honda’s chief Toshihiro Mibe. “We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”

The companies intend to continue coexisting and developing the brands held by Honda and Nissan equally. Additionally, Nissan and Honda have inked an MOU with Mitsubishi Motors to explore the potential for a trilateral collaboration on intelligent electrification. Mitsubishi aims to disclose the results of discussions by the end of next month.