Honda, Nissan begins merger talks, to compete with Tesla and other EVs

Japanese auto giants Honda and Nissan are reportedly moving towards a merger, aimed at bolstering their standing in the rapidly-evolving electric vehicle landscape

Newspaper Nikei reported that the two companies are said to be in the preliminary stages of discussions. They plan to operate under a single holding company and compete against Tesla and other major EV players.

Honda and Nissan are reportedly considering expanding their merger talks to incorporate Mitsubishi Motors, which Nissan currently holds a majority stake in.

Honda and Nissan issued almost identical statements in response, saying neither firm had announced the details in the report and that they are “exploring various possibilities for future collaboration, leveraging each other’s strengths,” as previously announced.

Honda and Nissan have been forging a path of collaboration in recent times, with an emphasis on developing EVs.

The partnership, which was initially established in March, has seen both automakers pledge substantial investments towards the development and deployment of EVs, with Honda doubling its investment to US$65 billion and Nissan announcing that half of its new models to be released over the next three years would be electrified.