Femi Ashekun/
Nissan and Honda are discussing a potential merger that could create a $52 billion Japanese car giant, according to insiders.
The move aims to help the companies compete more effectively against rapidly growing Chinese electric vehicle (EV) manufacturers and address slower-than-expected global demand for EVs.
The discussions are still in early stages, with concerns about political backlash in Japan, as merging two of the country’s most iconic car brands might lead to significant job losses, sources say.
Nissan, whose shares have dropped 40% this year, has been looking for a strong financial partner.
In November, it was reported that the company was considering various options, including merging with Honda. The two companies already collaborate on EV development and sales.
Nikkei first reported the talks.
In response, Nissan stated, “The content of the [Nikkei] report is not something that has been announced by either company,” but confirmed the exploration of future collaborations.
Honda and Renault, which has a cross-shareholding with Nissan, declined to comment.
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