Honda Motor (NYSE:HMC) and Nissan are expected to announce a plan to establish a joint holding company as part of a potential merger, sources told Reuters. The two automakers aim to finalise the agreement by June 2025, with the holding company expected to list shares in August 2026.
The merger would create the world’s third-largest auto group by vehicle sales, following Toyota and Volkswagen, as legacy carmakers contend with intensifying competition from Tesla and Chinese manufacturers like BYD.
Combining Mitsubishi Motors into the partnership could bring total sales to over 8 million vehicles annually.
According to Reuters (citing a person familiar with the matter), Honda would appoint the majority of the new company’s board, including its leader.
Both companies have faced declining sales, particularly in China, where local brands dominate the electric vehicle market.
The proposed deal would represent the biggest reshaping of the auto industry since Fiat Chrysler and PSA merged to form Stellantis in 2021.