Honda and Nissan have made their merger plans official by announcing of signing a MoU (memorandum of understanding) creating 3rd largest automaker in the world.
The creation of a joint holding company as part of the proposed business integration is viewed as a calculated move to increase their competitiveness in the electric vehicle (EV) market and challenge the dominance of Chinese competitors and Tesla.
Establishing a joint holding company aims to share the resources by all member companies to keep the production, R &D under control.
BREAKING: Honda and Nissan have signed an MoU to explore 'establishment of a joint holding company'. Targeting sharing of platforms, R&D, mfg facilities, supply chain. Mitsubishi Motors also signs MoU, to decide whether it will be part of the merger or not by end-January 2025. pic.twitter.com/lqmuwmVhrR
— Amaan Ahmed (@MrAhmedSays) December 23, 2024
This is a developing news; More details are awaited