A press release put out by Honda and Nissan confirm the two companies have signed a memorandum of understanding to start discussions about merging.
Way back in March, the two companies had signed a MOU to partner together on electrification, and then in August, the two signed another MOU that deepened the partnership and their work together on software research.
This doesn’t mean the companies will merge, it’s just one step closer.
The press release is buzz-word heavy, but running it through the corporate-to-English translator, the touted advantages for each company would revolve around sharing platforms, components, production lines, and supply chains — oh, and reducing costs, of course.
Another thing the two companies say they could do together includes sharing technical knowledge.
There’s a lot more to be done, such as creating a joint holding company that would be the parent company and getting listed on the Tokyo Stock Exchange — which has a target date of August 2026.
If an agreement does come to fruition, the target date for that is June 2025.
Nissan needs a dance partner to keep itself going, it appears, despite a slew of new and improved product hitting the market. It appears the Renault/Mitsubishi alliance hasn’t been good to Nissan.
I am a bit more perplexed on what Honda gets out of the deal — beyond potentially reduced production costs.
We’ll see what happens — this MOU means things are moving forward, but it doesn’t mean anything is official.
[Images: Honda, Nissan]
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Source: The Truth About Cars
