Nissan and Honda sign MOU to consider business integration

Nissan and Honda have signed a memorandum of understanding to start discussions and considerations towards a business integration between the two companies through the establishment of a joint holding company.

To further accelerate efforts towards achieving a carbon-neutral society and a zero-traffic fatality society the two companies signed a MOU in March 2024 regarding a strategic partnership for the era of vehicle intelligence and electrification.

A further MOU was signed in August 2024 to deepen the framework of the strategic partnership while also announcing an agreement to carry out joint research in fundamental technologies with regards to platforms for next-generation software-defined vehicles, focussing on intelligence and electrification.

Throughout the process, Nissan and Honda have engaged in discussions that consider the various possibilities and options. The latest MOU aims to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide.

If business integration can be realised, both companies aim to integrate their respective management resources including knowledge, human resources, technologies as well as the ability to respond to market changes. This strategy aims to improve the mid to long term corporate value of both entities.

Nissan and Honda aim to further contribute to the development of Japan’s industrial base as a leading mobility company by integrating Nissan and Honda’s four-wheel-vehicle and Honda’s motorcycle and power products businesses, enabling the brands of both companies to become more attractive and to deliver more attractive and innovative products and services to customers worldwide.

“This is a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realised, 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 of the two companies could achieve alone,” said Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida.

 

“The creation of new mobility value by bringing together the resources including knowledge, talents and technologies that Honda and Nissan have been developing over the years is essential to overcoming the challenging environmental shifts that the auto industry is facing,” said Honda Director and Representative Executive Officer Toshihiro Mibe.

 

The expected synergies from business integration at this time include scale advantages by standardising vehicle platforms, the enhancement of development capabilities and cost synergies through the integration of R&D functions and the optimisation of manufacturing systems and facilities. In addition this partnership aims to strengthen competitive advantages across the supply chain, realise cost synergies through operational efficiency improvements and establish a talent foundation for intelligence and electrification.