Honda, Nissan and Mitsubishi held a press conference history, in which they blazoned that they’ve officially started conversations for a possible junction of the three companies.
Cars brand merger agreement
The three brands Honda, Nissan and Mitsubishi inked a Memorandum of Understanding( MoU), under which a new holding company will be set up through a common share transfer between the three companies. still, Mitsubishi is still assessing whether or not to be part of the junction, with a final decision anticipated to be made by January 2025.
Nissan Honda merger
Once the cooperation is formed, Nissan and Honda will also subscribe a separate scowl – which will regularize vehicle platforms to reduce costs and also integrate the R&D functions of both the brands. Both brands will also acclimatize their manufacturing installations to partake product lines and further streamline force chain operations.
The junction between the Japanese brands is anticipated to be completed by August 2026, following which the new company will be listed on the Tokyo Stock Exchange. The MoU also states that Honda will designate a maturity of internal and external directors to run the joint holding company.
The signing of the scowl comes after weeks of rumors about a implicit junction amid Nissan’s fiscal extremity. piecemeal from the automotive business, the cooperation between Honda and Nissan will also include two- wheeler and aeronautics sectors.
