Are Honda & Nissan Merging? Here’s What We Know So Far

Amidst the normal bustle of the 2024 holiday season, some massive gearhead news began to ripple through the automotive industry:

Honda & Nissan Revealed They Were Considering a Merger.

Yowza. A recent press release confirms that two of the most storied Japanese marques are thinking about teaming up to potentially become the third biggest automaker on the planet, behind Toyota and the Volkswagen Auto Group. (If you’re wondering, Hyundai and Stellantis are currently third and fourth, respectively.)

Let’s be clear though, the only major revelation in all of this hubbub is that the two entities have signed a “Memorandum of Understanding” to begin the conversation. That’s a fancy way of saying that this is essentially a first date—wedding bells are hardly certain here.

That said, this announcement is still a big step and something not taken lightly by either company.

Why Would Either of Them Want This?

According to Reuters, Honda is roughly four times the size (market cap) of Nissan, so while it’s not quite a merger of equals, there are a myriad of reasons why this might be a good business move.

For starters, it’s no secret that Nissan has been on the proverbial ropes as of late, struggling with both a CEO scandal and sluggish sales in key markets around Asia and North America.

Honda, on the other hand, is doing much better across the board, but is relatively quiet on the electric vehicle front—which is extra critical as the company tries to boost sales in EV-friendly China and Europe.

So, from a 40,000 foot viewpoint, the merger makes sense as both a financial lifeline to Nissan and a way for Honda to capitalize on EV tech from Nissan (a company that helped pioneer mainstream EV adoption with its Leaf compact).

More importantly, the sheer scale of a new Japanese auto behemoth would, theoretically, be better positioned to clash against its larger rivals—notably the aforementioned Toyota and VAG.

Three to Tango?

Wait, the plot thickens.

The potential merger has drawn the eyes of a third Japanese automaker. Mitsubishi will make a decision on whether to join the party by the end of January 2025.

That move isn’t that all surprising, as Mitsubishi is also struggling to gain market share in the United States, and more importantly, Nissan already owns a considerable stake in the company already.

Mitsubishi currently offers a reduced portfolio of vehicles for the U.S. market, primarily composed of its Outlander crossover and Mirage compact. If part of the new merger, it may improve the company’s small footprint Stateside as well.

Learn some interesting history behind Mitsubishi’s role in the United States automotive market, and the creation of Diamond Star Motors, in this article: Is This AWD Eagle Talon TSi a Better Way to Enjoy an Eclipse?

If it Does Happen, When?

Again, going back to our “first date” analogy earlier, this news basically signifies that talks are happening—so it’s more of a Prelude (PUN!) to more announcements presumably on the horizon.

Regardless, the press release from Honda says that more clarity on how the businesses will be integrated is expected by the end of January 2025.

Better still, Honda offers a rough outline of key checkpoints in the courtship. Further explanation on businesses integration is coming in the summer of 2025 and the resolution to approve a formal share transfer is set to occur in April of 2026. As outlined in the release, the companies’ respective stock delistings could happen in August of 2026, one of the last significant steps in finalizing the merger.

So…Any Guesses on What It’ll Be Called?

While we’re sort of ambivalent on the whole Stellantis moniker, we’re hoping that the newly-minted company would retain some of the identity of its successors. After all, both Honda and Nissan have plenty of cache in their names—with automotive legacies stretching back decades.

Better still, both automakers have solid motorsports resumes—and haven’t been shy about parlaying that racing expertise to performance models available right off the showroom floor.

All told, we’re hoping that both the Honda and Nissan marques endure as separate entities with unique models. Maybe it’s us, but something just sounds odd about a Honda Altima or a Nissan Accord. Perhaps the parent company can get the fancy new name instead—heck, call it Hondassan or Nissanda or Hanson or whatever.

But we digress. The key takeaway here is simple:

Honda, Nissan, please do whatever you’ve got to do to FINALLY GET THE IDx INTO PRODUCTION!