TOKYO, Dec 23 — Honda Motor Co and Nissan Motor Co aim to conclude their merger talks in June, Kyodo news agency quoted a source familiar with the matter said today.
The two major Japanese automakers are set to announce the commencement of talks on a merger later in the day, which would form the world's third-biggest automaker group by volume.
Honda and Nissan, Japan's second- and third-largest automakers by volume, respectively, are expected to operate under a holding company with Mitsubishi Motors Corp, a Nissan partner, considering joining them.
The move aims to improve cost competitiveness and make inroads into the electric vehicle market dominated by rivals from the United States and China.
Honda and Nissan will look to split hefty development costs and reduce spending on production by sharing components.
EVs are one of the most critical segments for growth as electrification reshapes the global auto industry. But Honda, Nissan and other Japanese automakers have lagged behind competitors such as Tesla Inc of the United States (US) and China's BYD Co.
Honda and Nissan agreed in March to launch a feasibility study on a strategic EV production partnership, including related software technology development, to cut costs and improve competitiveness.
— Bernama-Kyodo
