It’s happening. Honda and Nissan have signed a memorandum of understanding (MOU) to explore integrating both automakers into a single new holding company. If all goes well, that company could launch in 2026. Here’s what we know so far.
For the next few months, a committee established by both brands will look at how to best implement the merger. That includes everything from standardization of vehicle platforms to integrated research and development, manufacturing, suppliers and supply chain needs, finance, efficiency improvements, and human resources. The current timeline calls for a definitive agreement concerning the business integration to be set by June 2025. The deal would need to pass various government requirements and be approved by shareholders of both companies, the latter of which is currently scheduled for April 2026.
Photo by: Honda
The two companies have been working together for almost a year. An MOU (memorandum of understanding) was signed in March 2024 for a partnership on vehicle intelligence and electrification. That was followed by another MOU in August to further expand and solidify that partnership into other technological areas.
It’s important to note that this doesn’t eliminate Honda and Nissan as we know them. Much like Stellantis, a new as-yet unnamed company would be created, under which both brands would still maintain their own identities (albeit with shared parts and platforms). From a stock perspective, Honda and Nissan would be de-listed on the Tokyo Stock Exchange and replaced by the new holding company, occurring in late summer 2026.
According to identical press releases from both automakers, Honda would hold a majority role in the new company’s management structure.
“Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future,” said Nissan CEO Makoto Uchida. “If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Photo by: Nissan
Curiously absent from the joint press releases are Renault and Mitsubishi. Both companies formed a strategic partnership with Nissan way back in 1999, and Renault is presently Nissan’s main shareholder. In a very brief announcement, Renault Group acknowledged the new MOU and stated it would “consider all options based on the best interest of the Group and its stakeholders.”
Mitsubishi is considerably more involved. The company announced it had also signed a MOU with Nissan and Honda, but only to “explore the possibility of Mitsubishi Motors’ participation, involvement, and synergy sharing” in this new holding company. A decision should come by late January 2025. In November, Nissan announced it was selling one-third of its stake in Mitsubishi.
“In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors,” said Mitsubishi CEO Takao Kato. “In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation.”
If the new holding company passes all obstacles and is approved by shareholders, it will be one of the largest automotive conglomerates in the world. But things are still in the early stages at this point.
“Honda and Nissan are two companies with distinctive strengths, ” said Honda Director and Representative Executive Officer Toshihiro Mibe. “We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”