Honda and Nissan Are in Talks to Deepen Ties and Possibly Merge

Honda Motor and Nissan Motor, Japan’s second- and third-largest automakers, are discussing ways to deepen their ties, including the possibility of a merger that could restructure Japan’s car industry as it faces mounting global challenges.Honda and Nissan began collaborating this year on the development of electric vehicles.Over several months, their discussions have expanded to the potential creation of a new corporation under which both automakers would operate, according to two people familiar with the matter who were not authorized to speak publicly.A new joint entity could provide Honda and Nissan with the resources and scale necessary to navigate an industry under immense pressure from costly technological transitions and the rise of fast-growing Chinese automakers.

Honda and Nissan each sell more than three million vehicles a year, meaning their combination would create one of the world’s largest automakers.The two companies are expected to sign a memorandum of understanding within the next week to formally begin discussions of partnership-broadening steps, including the details of a potential merger, the people familiar with the matter said.No final decisions have been made at this stage, they said.Honda and Nissan said in statements that they were in talks.

“As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” the companies said.“We will inform our stakeholders of any updates at an appropriate time.”This is a developing story.

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