Japan may create the world's third-largest car company

Nissan and Honda signed a memorandum of understanding to discuss the possibility of integrating the businesses of both companies by creating a joint holding company. Mitsubishi, whose largest shareholder is Nissan, may also join the holding. This was announced by the presidents of the three Japanese automakers during a joint press conference on December 23.

In case of merger, a new auto giant with a combined sales volume of more than 8 million cars per year will be formed in the global auto industry. This will make the company the third largest automobile group in the world in terms of sales after the concerns Toyota and Volkswagen, specifies DPA.

In a joint statement, the car companies announced that the potential merger is "aimed at maintaining global competitiveness." Mitsubishi plans to make a decision on participation in the alliance by the end of January 2025. Nissan and Honda intend to reach a final agreement by June next year. According to the announced plans, by August 2026 shares of the holding company will be listed on the Tokyo Stock Exchange.

It is assumed that after the merger Honda, Nissan and Mitsubishi will develop as separate brands, but will use common platforms and powertrains, as well as cooperate in the development of new products and use a common supply chain. All of this will reduce costs. Thus, the automakers will become "subsidiaries" in the new holding company.

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