Nissan, Honda, and Mitsubishi Motors explore merger

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Japanese automakers Nissan Motor, Honda Motor and Mitsubishi Motors have signed a memorandum of understanding (MOU) to explore the possibility of Mitsubishi Motors’ participation, involvement, and synergy sharing in relation to the business integration through the establishment of a joint holding company outlined in an MOU signed between Nissan and Honda.

The trio said in a statement on Monday that they have reached a basic agreement to proceed with discussions based on the framework established in the MOU signed by Nissan and Honda on August 1 regarding the commencement of a strategic partnership focused on intelligence and electrification.

Mitsubishi Motors has been participating in this framework, and the three companies have been proceeding with discussions.

Following the agreement between Nissan and Honda to start consideration toward a business integration through the establishment of a joint holding company amid the dramatic changes in the environment surrounding both companies and the automotive industry, the three companies have agreed to explore the possibility of achieving synergies at an increased level through Mitsubishi Motors’ participation or involvement in the business integration.

Mitsubishi Motors aims to reach its conclusion by the end of January 2025 on the participation or involvement in the business integration between Nissan and Honda.

“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 Director, President, Chief Executive Officer and Representative Executive Officer.

“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,“ he added.

Honda Director and Representative Executive Officer Toshihiro Mibe said at this time of change in the automobile industry, which is said to occur once every 100 years, the firm hopes that Mitsubishi Motors’ participation in the business integration discussions of Nissan and Honda will lead to further social change, and that they will be able to become a leading company in creating new value in mobility through business integration.

“Nissan and Honda will start the discussion from today onwards with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors,” he added.

Mitsubishi Motors Director, Representative Executive Officer, and President and Chief Executive Officer Takao Kato said that 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.

“In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation,” he added.

 

#AutomotiveInnovation #BusinessIntegration #EVPartnership #SynergyInMobility #FutureOfTransportation

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