Nissan and Honda announced that they have started formal talks for a potential merger, which would allow them to become the third-largest automaker in the world by sales.
On the other hand, Honda revealed that it plans to repurchase 24% of its outstanding shares before December 23 of next year, for an amount of up to 1.1 trillion yen (around 7 billion dollars).
As a result of this news, Honda’s shares rose by 15.51%, which would mark its best day since October 2008, more than 16 years ago, if the gains hold. In contrast, Nissan’s shares fell by more than 1%.
Honda and Nissan Merger
The agreement between both companies will focus on sharing knowledge and resources, taking advantage of economies of scale and creating synergies, according to Honda CEO Toshihiro Mibe.
A holding company will be created to serve as the parent entity for both companies, and it will be listed on the Tokyo Stock Exchange. The talks are expected to conclude by June 2025.
Mitsubishi, a strategic partner of Nissan, has been invited to join the new group, and it is expected to make a decision by the end of January 2025.
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Honda reported an operating profit of 1.382 trillion yen for the year ending in March 2024, while Nissan reached 568.7 billion yen. Together, the two companies would have a combined value of nearly 54 billion dollars, with Honda contributing the majority, approximately 43 billion dollars.
Analysts suggest that the potential merger is due to Nissan’s financial difficulties and the restructuring of its long-term alliance with the French company Renault.
In its latest quarterly report, Nissan announced plans to cut 9,000 jobs and reduce its global production capacity by 20%.
Where are Honda cars manufactured?
The original Marysville plant has produced 11 million vehicles to date, and this number continues to grow. Currently, the company manufactures cars in the following countries:
- United States
- Canada
- Mexico
- Brazil
- China
- Thailand
- India
- Vietnam
What is the best car brand?
Mercedes-Benz ranks as the most reliable luxury brand, with a score of 136 PP100, while Audi takes second place with 147 PP100.
Best Honda Cars
The company has established itself as one of the leading automakers in the world, whether with off-road sports cars or family sedans and crossovers. Here are the brand’s best vehicles:
- CR-X Si (1987)
- Civic Si (2017)
- Accord (2020)
- S2000 (2005)
- S800 Coupé (1968)
- Civic Type R (2019)
- NSX (2020)
- Clarity (2020)
- Integra Type R (2002)
- CR-V (2020)
What does Nissan mean in Japanese?
The name “Nissan” originates from the combination of two Japanese words: “Nihon” (Japan) and “Sangyo” (Industry), which together mean “Industries of Japan”.
Where was the Nissan brand born?
Nissan, the well-known global car manufacturer, debuted in 1911 with the founding of the Kwaishinsha (Kaishinsha) Motor Car Works in Tokyo.
What is the cheapest Nissan car in 2024?
The Nissan Versa 2024 is the most affordable model in both Mexico and the United States, priced at 17,820 dollars (359,675.32 Mexican pesos).
However, don’t let its low cost deceive you, as it doesn’t mean it lacks quality. Although it’s economical, the Versa offers an excellent value for money.
