Nissan and Honda Officially Signs MOU for Joint Holding Company

Honda and Nissan have officially commenced talks on business integration today, marking a significant development in the automotive industry. The two Japanese automakers, joined by Mitsubishi Motors, are hosting a joint press conference following their respective board meetings earlier today. This collaboration could reshape the global auto landscape, potentially creating the third-largest auto group by vehicle sales, trailing only Toyota and Volkswagen. 

Tokyo, December 23, 2024 – Nissan, Honda, and Mitsubishi Motors held a landmark joint press conference today to announce the commencement of negotiations for a business integration framework. The unification talks aim to create a new automotive powerhouse that could become the third-largest auto group globally, trailing only Toyota and Volkswagen in vehicle sales.

This move comes as the companies face mounting pressure from industry disruptions, including competition from Tesla and Chinese manufacturers. Discussions include the possibility of establishing a joint holding company, with integration plans aimed for finalization by June 2025. Honda and Nissan have already been exploring partnerships in electrification and software development, expanding their collaboration with Mitsubishi Motors earlier this year.

Vision for Future Mobility

At the press conference, Takao Kato, the president and CEO of Mitsubishi Motors, Toshihiro Mibe, the president and CEO of Honda, and Makoto Uchida, the president and CEO of Nissan, described the exciting ambitions and advantages of this partnership. The negotiations, which are scheduled to conclude by June 2025, aim to resolve issues brought up by Chinese automakers and industry disruptors like Tesla.

Toshihiro Mibe emphasized, "Our main aim is to combine intelligence and electrification to create new mobility values where communication and energy coexist. By leveraging our collective strengths, including Honda's expertise in motorcycles and aviation, we aim to develop advanced, large-capacity batteries and innovative software solutions. This integration will foster innovation worthy of our joint forces and unlock new mobility opportunities."

Makoto Uchida and Takao Kato echoed this vision, highlighting the importance of leveraging shared resources, talent, and technologies to redefine the mobility landscape.

Key Highlights of the Memorandum of Understanding (MoU):

The MoU, signed today, outlines the preliminary framework for integration and specifies key areas of collaboration:

• Scale Advantages: Standardizing vehicle platforms to optimize cost and efficiency.
• R&D Synergies: Enhancing development capabilities and reducing costs through shared research and innovation functions.
• Manufacturing Optimization: Integrating manufacturing systems and facilities for better resource utilization.
• Supply Chain Strengthening: Improving purchasing functions to secure competitive advantages across the supply chain.
• Sales Finance Integration: Leveraging scale advantages in sales finance functions to drive profitability.
• Talent Development: Building a strong foundation for expertise in intelligence and electrification.

Sub-Brands and Corporate Structure

Post-integration, the companies will operate under a joint holding company while retaining their respective sub-brands:

• ​Nissan: Infiniti
• ​Honda: Acura and Honda Two-Wheeler
• ​Mitsubishi: Continued focus on its SUV and plug-in hybrid vehicle lineup

The joint holding company will be led by Honda, which will appoint key leadership to ensure the venture’s maximum growth potential.

Roadmap and Milestones

• December 23, 2024: MoU signed to commence integration discussions.
• June 2025: Final agreement, including a share transfer plan, to be signed.
• August 2026: Joint holding company to be listed on the Tokyo Stock Exchange Prime Market.

Financial Aspirations

The partnership intends to produce yearly sales of more than 30 trillion yen and profits of more than 3 trillion yen, all the while preserving Nissan and Honda's unique advantages and technical innovations to foster growth on both sides.

As stated by Takao Kato, "Each company must continue on its own growth trajectory while combining our skills. By working together, we can revolutionize the global automotive sector and achieve unheard-of success."

This strategic partnership represents a turning point in the automotive industry and portends a future characterized by cooperation, creativity, and adaptability.