Honda And Nissan Will Reveal Merger Plan In February

Honda and Nissan are expected to unveil the outline of their merger in mid-February.

Sources close to the matter told Reuters the announcement was originally expected in late January before being pushed back. The delay stems from Honda's concerns over Nissan's restructuring efforts. Honda is pushing for stronger financial and operational reforms before committing to a merger, leading to extended discussions in their Integration Preparatory Committee.

Nissan’s ongoing financial difficulties remain a major hurdle in the merger discussions. Honda has reportedly demanded deeper restructuring measures before finalizing any agreement. Nissan’s current plan includes shedding 9,000 jobs, about 7% of its global workforce, along with a reduction in production capacity by 20%, with 25% of those cuts at three North American plants.

However, if Nissan fails to present a more concrete restructuring plan, the talks may break down before reaching a full integration agreement— the company needs to triple its profits over the next year to remain eligible for the merger.

Meanwhile, Mitsubishi Motors is postponing its decision on whether to join the merger until after Honda and Nissan announce the framework in February. The company is leaning toward staying independent rather than becoming part of the Honda-Nissan holding company but will finalize its stance after better understanding the details.

Back in December, both companies outlined a tentative roadmap that would see talks conclude by June, with a holding company established by August 2026.

Renault, Nissan’s long-term alliance partner and a 36% stakeholder, has previously indicated it is open to the merger in principle, but it expects full market value to be paid for its stake.

A Nissan-Honda merger would create one of the largest auto groups in the world, potentially better positioning both brands to compete with Toyota, Tesla, Chinese EV giants, and other global manufacturers.

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