A report from Nikkei Asia says the two Asian automakers are considering joining forces and that a memorandum of understanding may be forthcoming

Could Honda and Nissan become one super-automaker? Maybe.

According to a recent report in Nikkei Asia, the Japanese automakers are exploring a merger deal. It’s a significant development from joint releases put out by the companies in March and August that hinted at collaboration between the two with respect to EV and autonomous technology development.

“In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda,” reads a statement from Toshihiro Mibe, Honda’s director, president and representative executive officer, in a March 2024 press release.

“Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”

Now, it appears Honda and Nissan — and perhaps, one day, Mitsubishi — may come together under a joint holding company for which a memorandum of understanding (MOU) is said to be expected soon, according to Nikkei’s source.

At this point its unclear how (or if) a potential merger may impact Honda’s EV and battery manufacturing operations in Canada.

Combining resources

While a formal merger is speculative at this point, what is clear is that Honda, Nissan and Mitsubishi (of which Nissan owns the controlling stake) are leaning on each other heavily to navigate the challenges of the EV transition.

In March, Nissan and Honda entered into an MOU to “begin a feasibility study of a strategic partnership in the fields of vehicle electrification and intelligence.”

Then, in August, the two automakers signed another MOU — this time to carry out joint research for next-generation vehicle software. That same day Honda, Nissan and Mitsubishi entered into a three-way MOU to jointly work on intelligent and electric vehicles.

“Nissan and Honda’s discussions on a possible partnership have progressed, and we have decided to participate in this framework,” reads a statement from Takao Kato, representative executive officer, president and CEO for Mitsubishi Motors.

“Collaboration with partners is essential in today’s automotive industry, which is undergoing rapid changes due to technological innovations such as electrification and intelligence. We believe that we can discover new possibilities in a variety of fields through collaboration among the three companies.”

Each press release underscores how the companies see cooperation and collaboration as providing a safe and longterm path through the transition to electric vehicle manufacturing.

The pattern also follows Honda’s approach to EV manufacturing in Canada, which is seeing it partner with two other entities to build out an end-to-end supply chain in the country in deal announced earlier this year.

Meanwhile, if nothing else, the trifecta of MOUs certainly gives shape to the companies’ shared goals and product development. And they certainly don’t take away credibility to the reports of there being an eventual amalgamation.

Electric Autonomy continues to follow this evolving story.