In a massive shakeup of the auto industry, Japanese automakers Honda and Nissan have announced plans to merge and form the third-largest group in the world.
According to AP, Honda and Nissan have entered an understanding on Monday to integrate businesses beginning in June.
The operations are aimed to unify under a joint holding with Honda leading the management while holding the principles and brands of both companies. The former agreement will hit the Tokyo Stock Exchange by August 2026. Consumers won’t visibly see a change until 2030.
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Honda’s president, Toshihiro Mibe, also noted a need for “points that need to be studied and discussed.”
He added, “We have come to the realization that in order for both parties to be leaders in this mobility transformation, it is necessary to make a more bold change than a collaboration in specific areas,”