Honda-Nissan join hands, merger will bring new heights in the industry

Obnews Automobile Desk: Putting an end to the long-running speculation in the world automobile market, Nissan, Honda and Mitsubishi have officially announced their merger. These three companies have signed a Memorandum of Understanding (MoU) to form a joint holding company. The aim of this merger is to strengthen its hold in the electric vehicle (EV) market and compete with giants like Tesla and Chinese company BYD.

Annual target of 30 trillion yen

This joint venture aims to achieve annual sales of 30 trillion yen (Rs 16.30 lakh crore) and operating profit of 3 trillion yen (Rs 1.62 lakh crore). These companies plan to finalize their discussions by June 2025 and launch this holding company by August 2026.

Honda-Nissan partnership: Focus on new technologies

Under this merger, the companies will work on new technology, vehicle platform and design. Integrated efforts of research and development will reduce the cost of vehicles and this will make modern vehicles available in the market at affordable prices. Work will also be done on Next Generation Software Defined Vehicles (SDVs) under the joint venture.

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Strengths of Honda, Nissan and Mitsubishi

Honda is the largest partner in this merger, while it will help Nissan overcome its financial crisis. The three companies together will make about 8 million vehicles every year, which will give tough competition to companies like Toyota and Volkswagen.

statements of key officials

Nissan CEO Makoto Uchida said: “This merger will not only spur the development of new technologies but will also further strengthen our presence in the global market.”

Honda director Toshihiro Mibe said: “In this time of great change that comes once every 100 years, this merger will set new heights for the industry.”

Takao Kato, CEO of Mitsubishi Motors, said: “This collaboration will also bring significant benefits to Mitsubishi across its businesses.”

planned timeline