Honda, Nissan, Mitsubishi Considering Merger

Tokyo, Dec. 18 (Jiji Press)--Honda Motor Co., Nissan Motor Co. and Mitsubishi Motors Corp. are considering options for their cooperation including a merger, informed sources said Wednesday.

The Japanese automakers are eager to accelerate technology development in preparation for the full-scale spread of electric vehicles, aiming to survive competition with overseas rivals that are ahead in the EV market, people familiar with the matter said.

If realized, the three-way merger would create the world's third largest auto group, after the Toyota Motor Corp. group and the Volkswagen Group.
 

Honda and Nissan are expected to sign a memorandum of understanding soon and announce the start of merger talks later in the month, at the earliest, people close to the two companies said.

In a statement released Wednesday, Honda, Nissan and Mitsubishi said they are considering various future collaborations based on each company's strength.

The three automakers are seen examining the idea of setting up a holding company under which they will boost technology development while sharing costs to better compete with EV leaders Tesla Inc. of the United States and BYD Co. of China.

In March, Honda and Nissan signed a MOU seeking comprehensive collaboration chiefly in developing vehicle electrification technologies and in-vehicle software, and began discussions. Mitsubishi, whose largest shareholder is Nissan, joined the talks in August.

The three companies have been focusing on standardizing EV battery specifications and supplying each other such batteries as well as finished vehicles.

If they decide to integrate their management, they will have greater synergy effects, observers said.

Honda is developing a new EV series named "0" (zero) for launch in 2026 as part of its effort to meet the self-imposed target of making all products to be released in 2040 EVs or fuel cell vehicles. It also plans to build a new fuel cell factory in Tochigi Prefecture by March 2028.
 

Nissan, the electric car pioneer in the country, has been jointly developing electric minivehicles with Mitsubishi amid weaker demand for its EVs.
 

Nissan has also been struggling in the key North American market, as it has failed to meet high demand for hybrid vehicles there. In April-September, its group operating profit tumbled 90.2 pct from a year earlier.
 

The automaker's poor financial health may hinder the three-way merger talks, critics said.
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