Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. have signed a memorandum of understanding (MOU) to discuss the potential for a business integration through the establishment of a joint holding company. This agreement builds upon a prior MOU signed earlier in 2024, aimed at advancing collaboration in the fields of vehicle intelligence and electrification.
The two companies have been engaged in discussions to explore collaboration opportunities in response to rapid technological changes and a shifting automotive landscape. The current MOU is intended to strengthen their global competitiveness and develop strategies to enhance customer offerings.
If the business integration proceeds, it may enable Nissan and Honda to combine their resources, including expertise, workforce, and technologies. This would aim to foster synergies, improve operational efficiency, and adapt to evolving market conditions. Additionally, it is seen as a step toward supporting Japan’s industrial development in the mobility sector.
The companies announced plans to conduct joint research on platforms for next-generation software-defined vehicles (SDVs). These efforts are expected to focus on areas critical for vehicle intelligence and electrification, forming a foundation for deeper collaboration.
Potential synergies include standardizing vehicle platforms, optimizing manufacturing processes, integrating research and development, streamlining supply chains, and enhancing sales finance operations. These measures are expected to reduce costs, improve development timelines, and provide a broader range of mobility solutions.
The proposed business structure involves forming a joint holding company, subject to approval by shareholders and regulatory authorities. If approved, Honda and Nissan would become wholly owned subsidiaries of this entity. The new holding company would be listed on the Prime Market of the Tokyo Stock Exchange by 2026, while Honda and Nissan shares would be delisted.
Both companies emphasize their commitment to maintaining their individual brand identities and providing innovative products to meet global customer needs. Discussions and evaluations regarding the integration are expected to continue, with decisions anticipated by early 2025.
