Nissan, Honda, And Mitsubishi Aim To Form Strategic Merger For EV Innovation By 2026

Nissan Motor, Honda Motor, and Mitsubishi Motors Corporation signed a memorandum of understanding (MOU) on Monday to explore a strategic alliance focused on electrification and intelligence for future-generation vehicles.

According to the press release shared by Honda, the Japanese automakers have agreed on a discussion framework to consider a business integration through a joint holding company between Honda and Nissan, with the participation of Mitsubishi. The companies expect to settle the agreement by the end of next year.

“Honda and Nissan have begun considering a business integration, and will study the creation of significant synergies between the two companies in a wide range of fields,” said Makoto Uchida, Nissan President and CEO. “It is significant that Nissan’s partner, Mitsubishi Motors, is also involved in these discussions. We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base.”

According to Reuters, a future merger between Honda and Nissan would create the world’s third-largest automobile company by sales—Honda is Japan’s second-largest automaker, and Nissan the third.

The new alliance could have a significant impact on the market and would become a strong competitor to leading EV companies such as China’s BYD, and America’s Tesla.

“In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors,” said Takao Kato, Mitsubishi President and CEO.

The EV market has been facing significant changes in the past few months. A few days ago, GM shut down its robotaxi Cruise program abruptly, and other companies have been making major moves to stand out in the market. The American robotaxi Waymo recently expanded to the Japanese market.