Automotive expert Mike Caudill joins “Cavuto: Coast to Coast” to discuss the potential merger between Honda and Nissan and how it could impact both brands.
Japanese automakers Nissan and Honda It agreed to study a merger and create a joint holding company, which would create the world’s third-largest automaker.
The two companies said in a statement on Monday that they would seek combined sales of $191 billion and operating profits of more than $19 billion through the potential merger.
The two companies hope to conclude negotiations around June 2025 and create a holding company by August 2026, when the shares of both companies will be delisted.
The merger talks come as the two automakers struggle to compete with the world’s biggest electric car makers, including Tesla and Chinese automaker BYD.
What the Honda-Nissan merger means for the auto industry and consumers
Makoto Uchida (left), director, representative executive officer, president and CEO of Nissan Motor Corporation, and Toshihiro Mebe (right), director, president and representative CEO of Honda, hold a joint press conference on their merger (Reuters / Reuters Photos)
The merger will create the world’s third largest automobile group vehicle sales, Behind Toyota and Volkswagen.
The market value of Honda, the second largest Japanese automaker after Toyota, is more than $40 billion, while the value of Nissan, which ranks third, is about $10 billion.
“Today marks a pivotal moment as we begin discussions about a business integration that has the potential to shape our future,” Makoto Uchida, Nissan’s director, president, CEO and executive representative, said in a statement. “If this is achieved, I believe that by combining the strengths of both companies, we can deliver unparalleled value to customers around the world who value our brands. Together, we can create a unique way for them to enjoy cars that neither company can achieve alone.” “
The merger of Honda and Nissan will create the world’s third-largest automobile group in terms of car sales. (Reuters / Reuters Photos)
Toshihiro Mebe, Honda’s director and executive representative, said: “Creating new mobility value by combining resources including knowledge, talent and technologies that Honda and Nissan have been developing over many years is essential to overcome the difficult environmental transitions that we face.” Automotive industry Faces.
“Honda and Nissan are two companies with distinct strengths,” Meby added. “We are still in the review initiation phase, and have not yet decided on the business integration, but in order to find a direction for the possibility of business integration by the end of January 2025, we are striving to be the first and the only leading company that creates new mobility value through chemical reaction that can only be achieved By combining the two teams.”
Honda and Nissan also agreed to expand cooperation to include Mitsubishi Motors. (Reuters / Reuters Photos)
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The majority of the Board of Directors will be the holding company It was appointed by Honda.
The two companies are exploring ways to strengthen their partnership, including saying in March that they were considering partnering in electrification and vehicle intelligence and announcing in August an agreement to conduct joint research into core technologies in the area of next-generation software platforms. Specific vehicles.
They also agreed to expand cooperation to include Mitsubishi Motors.
Reuters contributed to this report.
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