Honda and Nissan announced discussions to merge in what would create the world’s third largest automaker.
Honda and Nissan are the number 2 and 3 Japanese carmakers, respectively, behind Toyota.
Honda is expected to take the lead in the new company, nominating the president and most of the directors, said Automotive News.
Specifically, the companies said they signed a memorandum of understanding to consider integrating their companies.
The deal would help save Nissan, which has seen declining sales and profits and which carries “massive debt,” said Automotive News.
Honda CEO Toshihiro Mibe said a merger might result in delivering a hybrid pickup truck in the US based on Honda’s gas-electric powertrains and Nissan’s experience in body-on-frame trucks.
He said the merger is not just about cost cutting but going bigger.
Each would continue to operate under their own brand, but under a holding company, as yet unnamed.
The revenue of the new company could reach almost $182 billion with profits over $19 billion, the companies said.
Honda is valued at about $40 billion and Nissan at about $10 billion, said Fox News.
Mitsubishi, partly owned by Nissan, will decide whether to join the partnership by the end of January, said Automotive News.
See more at Nissan and Honda, Automotive News, Fox News, APNews, Engadget
Photo: APNews
Hmmm, Pioneer is a big OEM for Honda and Clarion is big with Nissan, or used to be.