Nissan, Honda confirm talks on closer collaboration but no decision on a merger
Covered Nissan and Honda cars at the International Motor Show in Geneva, Switzerland, February 29, 2016. (File photo: Reuters/Denis Balibouse)
BANGKOK: Japanese automakers Nissan Motor Corp and Honda Motor Co confirmed Wednesday (Dec 18) that they are discussing closer collaboration but denied reports they have decided on a merger.
Nissan’s share price soared more than 22 per cent after reports citing unnamed sources said it might merge with Honda to form the world’s third-largest automaking group.
Trading in Nissan’s shares was suspended but then resumed after the companies issued a statement that said they were “considering various possibilities for future collaboration, but no decisions have been made”.
Honda's share price sank 2.3 per cent.
Nissan has an alliance with Renault SA that is under review. It recently announced it was slashing its headcount by 9,000 and cutting its global production by a fifth due to weaker sales in China and the US
Honda, Japan's second-largest automaker, and Nissan, third-largest, agreed in March to study a strategic partnership for making electric vehicles.
Joining forces would help the two companies gain a larger scale to compete with market leader Toyota Motor Corp and with Germany's Volkswagen AG.
