Nissan delays decision on Honda integration until mid-February
Nissan and Honda continue merger talks, decision expected in February
Nissan Motor has postponed the announcement of its potential merger with Honda Motor to mid-February, according to a company spokesperson.
Originally, the decision was expected by the end of January, but discussions within the Integration Preparatory Committee are still ongoing, reports Reuters.
The two companies, among Japan’s largest carmakers, have been exploring a historic integration by 2026 in response to growing competition from Chinese electric vehicle (EV) manufacturers. If successful, this would mark one of the most significant restructurings in Japan’s auto industry in recent decades.
Japan’s Auto Giants Face Pressure from China’s EV Growth
The potential merger highlights the increasing pressure from China’s rapidly expanding EV sector, which is disrupting traditional car manufacturers worldwide.
Both Nissan and Honda have been working independently to develop advanced EV and autonomous driving technologies, but the need to pool resources and expertise has become more apparent as Chinese carmakers aggressively expand into global markets.
The companies originally planned to finalize a strategic direction by June 2025, with a joint holding company to be established by August 2026. Under the proposal, shares of both companies would be delisted to facilitate integration and streamline operations.
Renault Backs the Deal, Mitsubishi Remains Hesitant
Nissan’s long-time partner, Renault, which holds a 36% stake in Nissan (including 18.7% through a French trust), has expressed support for the potential merger. The French carmaker has indicated that it is open to restructuring the alliance if it benefits long-term growth.
However, Mitsubishi Motors, a smaller partner in the Nissan-Renault-Mitsubishi alliance, is reportedly considering not joining the planned merger. Sources suggest Mitsubishi is evaluating whether integration with Honda aligns with its strategic goals.
The delay in announcing the merger direction underscores the complexity of negotiations, as both carmakers assess financial, operational, and strategic factors. If finalized, the deal could position Nissan and Honda as stronger competitors against global EV giants. The industry is now watching closely, as the final decision—expected by mid-February—could reshape Japan’s automotive future.
Additionally, Chery Holding Group Co., one of China’s leading automotive companies, has enlisted JPMorgan Chase & Co. to support the potential initial public offering (IPO) of its automotive unit in Hong Kong.
