Honda Motor and Nissan Motor are reportedly exploring plans to deepen collaboration, including sharing vehicle production facilities, as part of discussions that may lead to a full merger, Kyodo News reported on Saturday.
A merger between Japan’s second- and third-largest automakers could create the world’s third-largest automotive group by vehicle sales, trailing only Toyota Motor and Volkswagen Group. Combined, Honda and Nissan would produce approximately 7.4 million vehicles annually.
Under the proposed plan, Honda is considering supplying hybrid vehicles to Nissan while exploring the use of Nissan’s car factory in Britain. Currently, Honda operates only engine and motorcycle production facilities in Europe. These measures aim to optimize resources and strengthen both companies’ positions in the competitive global market.
The two automakers formed a strategic partnership in March to collaborate on electric vehicle development. However, Nissan has faced financial and operational challenges in recent months, which could further drive the case for closer integration.
When asked about the report, a Honda spokesperson acknowledged ongoing discussions among Honda, Nissan, and Mitsubishi Motors, noting that “nothing has been decided yet.” Nissan, the largest shareholder in Mitsubishi Motors, declined to comment, emphasizing that the report did not stem from an official announcement.
The potential merger comes amid uncertainty over global trade policies, including protectionist measures proposed by U.S. President-elect Donald Trump, which could disrupt manufacturing operations.
If realized, the merger would mark a significant reshaping of Japan’s automotive landscape, blending Honda’s expertise in hybrid technology with Nissan’s electric vehicle capabilities and global production network.
