Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. have announced the signing of a memorandum of understanding (MOU) to explore a business integration through the establishment of a joint holding company. The move aims to bolster global competitiveness and deliver innovative products and services, aligning with the automotive industry’s rapidly evolving landscape.

Driving Toward Carbon Neutrality and Innovation

The partnership builds upon an earlier MOU signed in March 2024, which outlined strategic collaboration in areas such as vehicle intelligence and electrification. Following a second MOU in August 2024, the companies expanded their cooperation to include joint research on next-generation software-defined vehicles (SDVs).

Nissan and Honda aim to accelerate their shared vision of achieving a carbon-neutral society and advancing zero-traffic fatality solutions by pooling their resources, expertise, and technologies.

Strategic Objectives and Potential Synergies

The proposed integration is designed to leverage both companies’ strengths, creating synergies to enhance operational efficiency and long-term corporate value. Key areas of focus include:

• Platform Standardization: Developing unified platforms across product segments to reduce costs, improve investment efficiency, and enhance product strength.
• R&D Integration: Combining research efforts in vehicle platforms and fundamental technologies to accelerate innovation and reduce development costs.
• Optimized Manufacturing: Streamlining production facilities to increase capacity utilization and reduce fixed costs.
• Supply Chain Strengthening: Consolidating purchasing functions to boost competitiveness and optimize part sourcing.
• Operational Efficiency: Unifying systems and back-office operations to achieve cost reductions.
• Sales Finance Integration: Expanding financial services to enhance mobility solutions for customers.
• Talent Development: Promoting skill-building and attracting top talent through shared resources and increased employee exchanges.

The companies project that the integration could generate annual revenue exceeding ¥30 trillion (USD 200 billion) and operating profits surpassing ¥3 trillion (USD 20 billion).

Joint Holding Company and Governance Structure

The joint holding company, which will serve as the parent entity for Nissan and Honda, is expected to launch in August 2026. The companies plan to delist their individual shares from the Tokyo Stock Exchange (TSE) and list the new holding company on the TSE Prime Market.

Honda will hold a majority presence on the joint holding company’s board of directors, with its nominees expected to occupy key leadership positions. The companies emphasize maintaining their distinct brand identities while benefiting from shared synergies.

Timeline for Integration

• December 2024: Board resolution and MOU execution.
• June 2025: Execution of a definitive agreement, including a share transfer plan.
• April 2026: Shareholder approval at extraordinary general meetings.
• August 2026: Effective date of integration and listing of the joint holding company.

The proposed integration represents a bold step toward redefining mobility, with Nissan and Honda poised to lead the next era of automotive innovation. By combining their expertise, the companies aim to set a benchmark for sustainability, efficiency, and technological excellence in the global automotive landscape.