Dec. 18 (UPI) — Japanese automakers Honda and Nissan are reportedly considering a merger that would create one of the world’s largest car manufacturers.
Honda President Toshihiro Mibe told reporters Wednesday the two companies were “considering collaboration” but added that “nothing has been decided.”
Nissan similarly said no decisions have been made but that it was considering multiple possibilities for collaboration with Honda. It clarified, however, that reports the two automakers were “considering a business integration” were not based on an announcement from Nissan.
A formal announcement of what would be a mega-merger in the overseas auto world could come as early as this upcoming Monday, Kyodo News reported.
The reports came amid rumors that Foxconn had made an offer to buy out Nissan.
The Honda-Nissan merger is also seen as a necessity so the car companies can be more competitive in the electric vehicle market, fending itself off against U.S. foe Tesla and China’s BYD.
Nissan had announced plans to cut 9,000 jobs and lower global production capacity by one-fifth in November. It had posted lower-than-expected results for the second quarter, that ended in September and dropped its one-year revenue outlook.
Honda and Nissan are looking at coming together under a holding company and could eventually bring Mitsubishi Motors into the agreement. Nissan is Mitsubishi’s largest shareholding with a 24% stake in the company.
Share of Nissan surged nearly 24% on the news, its best day on the stock market since 1985. Honda stocks fell 3%.
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