Neither of the two companies has made an official announcement yet regarding the status of the discussions. A spokesperson from Honda informed USA TODAY that talks between the two companies are ongoing and that more details will be revealed in due course. “The two companies had initially aimed to finalize the management integration direction by the end of January, but discussions by the Integration Preparatory Committee are still ongoing. We are targeting mid-February to solidify our decision and will make an official announcement at that time,” stated Nissan in a release.
If the merger goes through, it would position the newly formed Nissan and Honda entity as the world’s third-largest auto group, as reported by Reuters. The companies had previously intended to disclose a decision by the end of January but postponed it to mid-February. Last year, they signed a memorandum of understanding that allowed for integration discussions to proceed through a joint holding company.
A potential merger could provide a competitive edge against Chinese manufacturers in the electric and self-driving vehicle era, noted Jessica Caldwell, head of insights at auto research and news firm Edmunds. “A merger represents a long-term strategy, not a quick fix to immediate challenges faced by either company,” Caldwell expressed to USA TODAY. “Both Nissan and Honda are positioning themselves for the future, which will be shaped by electrification and autonomous technology – endeavors that entail substantial costs.”
The talks of a merger come amidst the repercussions of Trump’s tariffs. President Donald Trump’s recent announcement of tariffs up to 25% on imports from Mexico and Canada, as well as a 10% tariff on Chinese imports, has created uncertainty. “Investors may express apprehension about Nissan’s future and turnaround,” commented Morningstar analyst Vincent Sun to Reuters. “Nissan also faces higher risk exposure to U.S.-Mexico tariffs compared to Honda and Toyota.” Sun also highlighted concerns about Nissan’s limited electric vehicle lineup and heavy reliance on Mexico.
In 2024, Nissan produced more vehicles in Mexico than in any other country, outpacing production in China and Japan. Similarly, Honda manufactures cars in Mexico, exporting them to the U.S., as reported by the Wall Street Journal.
Contributing: Julia Gomez and Mike Snider, USA TODAY
This article was originally published on USA TODAY: Honda, Nissan negotiation talks shaky amid disagreements: Reports
