Honda and Nissan On the Brink of a MASSIVE Merger?

Nissan Motor Co. and Honda Motor Co. announced that the two companies have signed a memorandum of understanding under which they will begin a feasibility study of a strategic partnership in the fields of vehicle electrification and intelligence. Are they on the brink of a massive merger that will hurt other brands.

This is not a merger, but what it could do is share software platforms, core components related to EVs, and complementary products. This is per their corporate statements.

Honda Motor and Nissan Motor, Japan's second- and third-largest automakers, are discussing ways to deepen their ties, including the possibility of a merger that could fundamentally restructure both brands and the Japanese car industry. Its important to note that discussions are still at an early stage, the thinking at Nissan and Honda

Honda and Nissan began collaborating this year on the development of electric vehicles. Why are these competing brands working together?

Because Nissan is on the brink of collapse. Things aren't looking good at Nissan and a few executives said the company has "12 to 14 months to survive." Dealers are selling cars at a loss, production has slowed, and more recently, the company cut thousands of jobs and sold a third of its stake in Mitsubishi. But it all may have been too little too late.

Nissan is under stress to sell more cars and creating new products customers want, has suffered yet another blow, with news it is set to ax a number of its Infiniti showrooms. Infiniti is the luxury division of Nissan.

Infiniti is set to draw the curtains on a most to of its stand-alone dealerships in the US and merge the two brands under one dealership across the country. Imagine the costs that dealers have invested in stand alone dealership for Infiniti, millions of dollars each, plus employees in sales, service and office staff could lose their jobs.

Acura has good market share and this could help cut costs for both brands and save or fold Infiniti.

Now we are hearing that Nissan and Honda to start feasibility study of strategic partnership
Partnership aimed towards a future of electrified and intelligent mobility

Last year, Honda sold 3.98 million vehicles and Nissan 3.37 million. Their combination could make them the world’s third-largest automaker group, behind their Japanese rival Toyota Group, which sold 11.23 million vehicles last year, and Volkswagen Group of Germany, which sold 9.23 million.

Nissan also holds a large stake in Mitsubishi Motors, a smaller Japanese automaker. Nissan and the French automaker Renault have been strategic partners for more than two decades much of that is dissolving especially after the arrest and bad optics of their CEO Carlos Ghosn in 2018. We will never know the real story on that but the results have definitely hurt Nissan.

Producing better product and this merger with Honda could expand Honda truck lineup. We will be watching as this story unfolds.

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