Nissan, Honda Unveil Historic $200B Auto Merger Plan for 2026

Tokyo, Japan—Nissan Motor Co. and Honda Motor Co. announced today that they have signed a memorandum of understanding to form a joint holding company. 

The deal is targeted for completion by August 2026.

The proposed integration would create a mobility company with projected sales revenue exceeding JPY 30 trillion and an operating profit of more than JPY 3 trillion, the companies said in a joint statement.

Honda would maintain control of the merged entity, with rights to nominate the majority of internal and external directors and the president and representative executive officer of the joint holding company.

The companies plan to standardize vehicle platforms across product segments and integrate research and development functions, particularly in software-defined vehicles. 

The merger would combine Honda's motorcycle and power products businesses with both companies' four-wheel vehicle operations.

The integration aims to optimize manufacturing systems and facilities through shared production lines and improved capacity utilization. 

By streamlining purchasing operations and consolidating back-office functions, the companies expect to reduce costs.

Nissan CEO Makoto Uchida said the integration would allow the companies to "deliver unparalleled value to customers worldwide." 

Honda's Executive Office,​​r Toshihiro Mibe, emphasized the importance of the merger in addressing the auto industry's environmental challenges.

The companies plan to execute a definitive agreement by June 2025, followed by extraordinary shareholder meetings in April 2026. 

The new holding company will be listed on the Tokyo Stock Exchange's Prime Market in August 2026, while Nissan and Honda will be delisted.

The share transfer ratio will be determined before the final agreement based on due diligence and third-party valuations referencing the average closing prices of both companies' shares.

The companies said they would maintain and develop the Honda and Nissan brands equally following the integration.

The integration preparatory committee will determine the new company's name, registered office, and organizational structure.

The deal remains subject to shareholder approval, regulatory clearances, and the successful execution of Nissan's ongoing turnaround actions.

The companies said they would promptly announce any changes to the integration schedule or process.