“Honda and Nissan announced the beginning of reunification into a joint holding Honda and Nissan signed an agreement on the creation of a joint holding, which will go public in 2026. The combined company will become the third largest car manufacturer in the world after Toyota and Volkswagen.”, — write on: unn.ua
Details
It is noted that Honda, which will get the majority in the board of directors, will start buying up $7 billion worth of its own shares from the market. It is likely that the holding will also include Mitsubishi, a quarter of which belongs to Nissan.
The merger will create the world’s third-largest automaker after Toyota and Volkswagen, with 7.5 million cars a year, and will allow the companies to fight off competitors, mostly Chinese.
The agreement is a lifesaver, first of all, for Nissan, which recently had to cut production plans by 20% and announce the reduction of nine thousand workers. According to former CEO Carlos Ghosn, sales have fallen by more than 40% since his arrest in 2018.
All three companies have problems with hybrid technologies, which are currently the most popular in the Chinese market.
We will remind
Previously, the media reported on the possible merger of Nissan and Honda to create a new holding company. The combined company with Mitsubishi will be able to sell more than 8 million cars annually, competing with Toyota and Volkswagen.