Nissan and Honda were planning to combine their forces as they face major loss in electric vehicles (EV) market.
The Japanese auto manufacturers are exploring the merger option by setting up a joint holding company, which they hope will reach a deal by June 2025, Reuters reported.
According to a source, both the companies will hold a press conference on Monday (December 23) which Nissan’s alliance partner Mitsubishi Motors is also set to attend.
Nissan and Honda are aiming to finalise the deal by June 2025 and set up a holding company in August 2026.
It was also revealed by the source that the majority of the board, including the leader will be appointed by Honda.
This merger between the two Japanese auto manufacturers would result in one of the biggest transformation in the global auto industry.
There have been talk of the merger between Nissan and Honda for a while now as both companies are suffering at the hands of EVs giant like Tesla and BYD especially in China’s market.
Previously in March, it was revealed that Nissan and Honda would work together on software development and in August another update regarding the collaboration came out where it was shared that they will be working on battery technology.
