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Media reports Japanese vehicle leaders explore merger to tackle China’s EV power
(MENAFN) Nissan and Honda have confirmed they are in preliminary discussions about a potential merger as both companies face increasing pressure from Chinese electric vehicle (EV) manufacturers. The Japanese automakers are struggling with slow global demand for EVs and fierce competition from Chinese brands, such as BYD, which offer more affordable and advanced technology.
Honda and Nissan issued identical statements confirming they are exploring various collaboration options, including a possible merger or capital tie-up, but did not provide specific details or a timeline for any agreement. Honda’s Executive Vice President, Shinji Aoyama, revealed that they are considering multiple strategies, including creating a new holding company to merge their operations.
Nissan, once a leader in EV technology, has fallen behind, while Honda faces challenges in transitioning to zero-emission vehicles amid weak demand and insufficient infrastructure. Experts suggest that a merger could help the combined entity compete more effectively with EV giants like Tesla and BYD. Mitsubishi Motors, already in partnership with Nissan, may also be involved in the merger talks. This move comes as Chinese EV makers gain dominance, bolstered by strong government incentives and a shift in consumer preference towards local brands.
Honda and Nissan issued identical statements confirming they are exploring various collaboration options, including a possible merger or capital tie-up, but did not provide specific details or a timeline for any agreement. Honda’s Executive Vice President, Shinji Aoyama, revealed that they are considering multiple strategies, including creating a new holding company to merge their operations.
Nissan, once a leader in EV technology, has fallen behind, while Honda faces challenges in transitioning to zero-emission vehicles amid weak demand and insufficient infrastructure. Experts suggest that a merger could help the combined entity compete more effectively with EV giants like Tesla and BYD. Mitsubishi Motors, already in partnership with Nissan, may also be involved in the merger talks. This move comes as Chinese EV makers gain dominance, bolstered by strong government incentives and a shift in consumer preference towards local brands.
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