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Nissan and Honda have officially confirmed the rumors that they’re pursuing a merger, in a move that would create the world’s third-largest automaker by sales volume, with a potential net worth of up to $50 billion.
The proposed joint holding company would still operate under their respective brands, but with increased collaboration and standardization across various aspects of their business. This includes standardizing vehicle platforms, unifying research and development teams, and optimizing manufacturing systems and facilities. Such integration could potentially lead to significant cost-cutting measures.
It is worth noting that the partnership builds upon previous collaborations between the two companies. In a statement, they announced plans to work together on EV (Electric Vehicle) development earlier this year. However, it seems their efforts have evolved into a more comprehensive merger plan.
The combined entity would likely benefit from a more diversified product portfolio, allowing them to better compete in an increasingly competitive market. Specifically, Nissan’s expertise in large pickup trucks and SUVs, as well as its experience with EVs and plug-in electric vehicles, could be bolstered by Honda’s relatively stable financial situation.
Conversely, it seems that Nissan has been struggling financially, particularly within Japan, whereas Honda appears to have maintained a more consistent financial footing. This merger would provide an opportunity for Nissan to stabilize its finances by leveraging Honda’s financial stability.
The proposed move is subject to regulatory approval and other conditions, but the potential benefits could be substantial.
Source: www.engadget.com
