Major reshuffle in the automotive industry! Nissan and Honda are brewing a merger

According to a report by Nikkei on Tuesday, Japanese automakers Nissan and Honda Motor plan to negotiate a merger to better respond to the rapidly changing global automotive industry. The report noted that Honda and Nissan are considering operating through the establishment of a holding company and will sign a memorandum of understanding (MoU) soon. Additionally, the two companies plan to eventually include Mitsubishi Motors under the holding company, with Nissan currently being the largest shareholder of Mitsubishi Motors, holding a 24% stake. Honda stated in an email declaration, "The content related to the reports was not released by our company." As announced in March this year, Honda and Nissan are exploring various possibilities for future cooperation to leverage each other's strengths. We will disclose further information to stakeholders at the appropriate time." In August of this year, Nissan and Honda reached a strategic cooperation agreement to share automotive parts and software. If this merger is successfully achieved, it will become the largest merger in the global automotive industry since the merger of Fiat Chrysler and France's PSA Group to form Stellantis in January 2021. Previously, automotive industry consultants and other experts have called for mergers and acquisitions to share costs to better respond to the rapid expansion of Chinese automakers and competition from American electric vehicle leader Tesla. As of Tuesday's midday trading session, Honda's stock listed in the U.S. rose about 2%, while Nissan's over-the-counter stock price surged more than 11%. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk