TOKYO, Dec. 18 (Xinhua) — Major Japanese carmakers Honda Motor and Nissan Motor will enter negotiations towards a merger, becoming a member of their sources to face fierce overseas competitors in a quickly altering vehicle business, native media reported Wednesday.
Japan’s second and third largest automakers are contemplating working underneath a holding firm, and shortly will signal a memorandum of understanding, Nikkei Asia mentioned, citing sources near the matter.
Their respective stakes within the new entity, in addition to different particulars, can be determined later.
The report additionally mentioned that Mitsubishi Motors, during which Nissan is the highest shareholder, may be a part of the grouping, forming the world’s third-largest auto group with mixed gross sales reaching round 8 million automobiles.
Nissan, Honda and Mitsubishi confirmed the report in almost identically worded statements launched later within the day, saying they’re contemplating a lot of choices together with the plan talked about within the press experiences.
Nissan mentioned that it’s contemplating varied features of future collaboration with Honda and Mitsubishi Motor, “but nothing has been decided at this time.”
Honda and Nissan agreed in March this 12 months to begin a feasibility examine on a strategic partnership in EV manufacturing and software program applied sciences to chop prices and enhance competitiveness, with Mitsubishi Motors becoming a member of the talks in August, in accordance with Nikkei Asia.