NEW YORK, Dec. 23 (Xinhua) — Nissan and Honda have introduced plans to merge by 2026 in a seismic shift for the Japanese auto trade, after signing a memorandum of understanding that permits them to proceed discussions about integration through a joint holding firm, USA Today on Monday cited the businesses’ announcement.
If Nissan and Honda are to combine, they might change into the third-largest auto group on the earth, native media reported, including that Mitsubishi Motors, of which Nissan owns a 24 p.c stake, will announce if the corporate will be a part of the merger by the top of January.
“The rise of Chinese automakers and new players has changed the car industry quite a lot,” stated Honda CEO Toshihiro Mibe at a press convention, citing technological traits of electrification and autonomous driving. “We have to build up capabilities to fight with them by 2030, otherwise we’ll be beaten.”
Once the merger is full, Honda and Nissan purpose to have mixed gross sales of 191 billion U.S. {dollars}. Jessica Caldwell, head of insights for auto analysis and news firm Edmunds, informed native media that the merger is sensible.
“A merger would be a long-term strategy, not a solution to any short-term challenges either company is facing,” stated Caldwell. “Both Nissan and Honda are positioning themselves for the future, which will be defined by electrification and autonomous technology – developments that are extremely costly.”