Today, Honda and Nissan signed a memorandum of understanding bringing their merger talks to an official platform. Mitsubishi Motors has also agreed to enter the merger discussion.
Honda has admitted that it will lead the new management, retaining the principles and brands of each company.
“Today marks a pivotal moment,” Nissan CEO Makoto Uchida said. “Together, we can create a unique way for (customers) to enjoy cars that neither company could achieve alone.”
“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” Uchida said.
A merger would create a company valued at over $50 billion, making it the third-largest in the auto industry. Japan’s Cabinet Secretary, Yoshimasa Hayashi, emphasized the importance of Japanese companies remaining competitive to survive in a rapidly changing market.
“As the business environment surrounding the automobile industry largely changes, with competitiveness in storage batteries and software is increasingly important, we expect measures needed to survive international competition will be taken”, Hayashi said.
By CEO NA Editorial staff
