Nissan and Honda have confirmed plans to merge to help save costs and accelerate plans to electrify their product ranges. Mitsubishi bosses have signed a separate agreement which could see it join the new company too.

The official announcement notes that the businesses have already signed up for various collaborations around the sharing of tech and EV hardware, but says; “the business environment for both companies and the wider automotive industry has rapidly changed and the speed of technological innovation has continued to accelerate. The [agreement] between Nissan and Honda announced today is aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide.”

The companies say they aim to integrate “management resources” and technology, but the brands would remain distinctive, just as the current ranges from Nissan and Renault, which already share platforms and powertrains.

The plans would also see Nissan and Honda become a “leading global mobility company” by integrating Nissan and Honda's four-wheel-vehicle and Honda's motorcycle and power products businesses. 

Nissan President Makoto Uchida said: "Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realised, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone."

Honda boss Toshihiro Mibe said: “Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing. Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams."

It's expected that the companies will continue to build conventional combustion engined vehicles in addition to EVs.