Honda and Nissan have reportedly begun merger talks

Honda and April The merger is reportedly set to be discussed. Japanese publication Nikki He said The two automakers plan to sign a memorandum of understanding to unify common equity stakes in a new holding company for the merged competitors.

A potential merger would combine the assets of Japan’s second- and third-largest automakers, giving them a better chance of competing with the country’s market leader. Toyota. Bloomberg He adds It will also put them in a better position against them Tesla And Chinese electric car makers. Nikkei says Mitsubishi may join the talks later.

Earlier this year, Honda and Nissan He said Together they will develop software, batteries and other electric vehicle components. This “merger and competition” alliance came in the wake of Toyota’s acquisition of shares in Toyota Subaru, Suzuki and Mazda. With today’s news that the pair is ready to take the next step, it’s clear that the landscape is moving toward fewer (but larger) legacy automakers vying for customers.

The companies confirmed that they are in talks with… New York Times. “As announced in March this year, Honda and Nissan are exploring various possibilities for future cooperation, leveraging each other’s strengths,” they told the publication. “We will inform stakeholders of any updates in due course.”

Bloomberg also I mentioned On Tuesday, Honda announced that it is ramping up production of hybrid vehicles Demand for electric/gas vehicles remains high outside China. The automaker aims to double its annual hybrid sales by 2030. “The goal is still to become carbon neutral by 2050, but demand for hybrids will remain high for the foreseeable future,” Honda CEO Katsuto Hayashi said Sunday. “We see most of this growth happening in North America.”

Speaking of North America, US President-elect Donald Trump is said to be planning to do just that Reversing President Biden’s electric vehicle policies. His transition team is said to have recommended ending government subsidies for electric vehicles and charging stations and instead focusing on blocking cars, components and battery materials from China. Climate scientists have to caution Switching from gas-powered cars to electric cars is essential to reduce carbon emissions and avoid this from happening Most predictions are catastrophic For our planet.

Updated, December 17, 2024, 8:46 PM ET: This story has been updated to add a statement provided by the companies New York Times.