Honda and Nissan are said to have held exploratory talks about a possible merger to help them compete against electric vehicle (EV) makers, especially in China. In March, the two Japanese car makers agreed to explore a strategic partnership for EVs.
The firms responded to the BBC with identical statements: “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.” It comes as many car brands grapple with growing competition as the industry shifts from petrol and diesel vehicles to electric, with production in China booming.
Honda and Nissan neither denied the story, as first reported by the Japanese business newspaper Nikkei, but said it was “not something that either company has announced.” The talks are believed to be in the early stages and not even close to being signed. If there are any updates, we will inform our stakeholders at the appropriate time,” they added.
Japanese TV channel TBS reports that the two companies will likely announce officially next week that they have held talks. Japanese carmaker Nissan refused to comment on a report published by Bloomberg stating that Foxconn had approached the company about the iPhone manufacturer taking controlling stakes in the carmaker. Foxconn did not immediately respond to a request for comments from the BBC.
Several factors would complicate this potential merger of Japan’s number two and three car manufacturers. Any deal would face scorching political heat back in Japan. The country may feel threatened because millions of its employees will lose jobs. In this case, Nissan is expected to face untangling from an alliance of French automobile producer Renault.
Honda and Nissan agreed in March to cooperate in their EV businesses and deepened their ties in August by agreeing to work together on batteries and other technology.
