Tokyo, Japan – In a move that could redefine the global automotive landscape, Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. have signed a memorandum of understanding (MOU) to explore a historic business integration. The potential alliance, through the establishment of a joint holding company, aims to bolster their competitive edge in the rapidly evolving auto industry.
The announcement comes amid an accelerating push toward carbon neutrality and advanced vehicle technologies. Both companies envision leveraging their collective expertise to redefine mobility and strengthen their positions in the era of electrification and vehicle intelligence.
Key Highlights of the Integration Plan
- Unified Vehicle Platforms: The collaboration aims to standardize vehicle platforms across product segments, promising cost savings, efficiency improvements, and the creation of more competitive vehicles.
- Joint R&D for Next-Gen Tech: A shared focus on software-defined vehicles (SDVs) and advanced electrification technologies will streamline research efforts and cut development costs.
- Optimized Manufacturing and Supply Chain: By integrating production systems and purchasing operations, the companies anticipate enhanced capacity utilization and streamlined operations.
- Talent Synergies: Shared human resources and expanded talent acquisition efforts will foster innovation and expertise in electrification and intelligence.
- Scale in Sales and Finance: Integrated sales finance functions are expected to enhance customer offerings and improve operational efficiencies.
A Vision for the Future
If realized, the partnership aims to establish a joint holding company by August 2026, with the ambition of becoming a world-class mobility leader. Projected synergies could generate over ¥30 trillion in annual sales revenue and ¥3 trillion in operating profit.
Makoto Uchida, President and CEO of Nissan, expressed optimism:
“Today marks a pivotal moment. By uniting our strengths, we can create unparalleled value for our customers and lead the mobility revolution.”
Honda’s CEO Toshihiro Mibe emphasized the transformative potential:
“This collaboration represents a unique opportunity to synthesize our distinct strengths and shape the future of mobility with innovative solutions.”
Industry Impact and Next Steps
As Nissan and Honda prepare for detailed due diligence and integration planning, the global auto industry watches closely. The proposed joint holding company will be listed on the Tokyo Stock Exchange, marking a new chapter in Japan’s automotive history.
While the MOU signifies the start of exploratory discussions, both companies are committed to delivering superior products and services that redefine customer experiences. With an eye on January 2025 for a final decision, the automotive world is set to witness a potential game-changing partnership.
Schedule for the business integration
| Board of directors’ resolution | December 23, 2024 |
| Execution of the MOU | December 23, 2024 |
| Execution of a definitive agreement concerning the business integration (including the share transfer plan) | June 2025 (planned) |
| Extraordinary shareholders’ meeting of the companies (resolutions to approve the share transfer) | April 2026 (planned) |
| Delisting from the TSE | End of July-August 2026 (planned) |
| Effective date of the share transfer | August 2026 (planned) |
Note: The above schedule is tentative and may change as a result of consultation by the companies
