Nissan Motor Co., Ltd. (“Nissan”), Honda Motor Co., Ltd. (“Honda”), and Mitsubishi Motors Corporation (“Mitsubishi Motors”) have signed a memorandum of understanding (MOU) to explore the possibility of Mitsubishi Motors’ participation, involvement, and synergy sharing in relation to the business integration through the establishment of a joint holding company outlined in an earlier agreement between Nissan and Honda.
Nissan, Honda, and Mitsubishi Motors have reached a basic agreement to proceed with discussions based on the framework established in the MOU signed by Nissan and Honda on August 1, focusing on intelligence and electrification. Mitsubishi Motors has been participating in this framework, and the three companies have been advancing discussions.
Following the initial agreement between Nissan and Honda to start exploring a business integration, the three companies have now agreed to evaluate the potential synergies that could arise from Mitsubishi Motors’ involvement. Mitsubishi Motors aims to conclude its assessment by the end of January 2025 regarding its participation in the integration discussions.
Strategic Partnership for Intelligence and Electrification
Nissan and Honda initially signed a memorandum of understanding (MOU) on March 15, focusing on a strategic partnership for advancing vehicle intelligence and electrification. This was followed by an additional MOU on August 1, emphasizing collaboration in next-generation Software-Defined Vehicles (SDVs) and technological innovation.
The companies have identified potential synergies in areas such as standardizing vehicle platforms, optimizing manufacturing systems, integrating purchasing functions, and improving operational efficiencies. If realized, the integration aims to deliver significant cost advantages, enhance development efficiencies, and create a scalable model for future automotive innovations.
Shared Commitment Towards a Collaborative Future
Marking the announcement, Nissan Director, President, CEO, and Representative Executive Officer Makoto Uchida said:
“Honda and Nissan have begun considering a business integration and will study the creation of significant synergies between the two companies in a wide range of fields. It is significant that Nissan’s partner, Mitsubishi Motors, is also involved in these discussions. We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base.”
Honda Director and Representative Executive Officer Toshihiro Mibe added:
“At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors’ participation in the business integration discussions of Nissan and Honda will lead to further social change, and that we will be able to become a leading company in creating new value in mobility through business integration. Nissan and Honda will start the discussion from today onwards with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors.”
Mitsubishi Motors Director, Representative Executive Officer, and President and CEO Takao Kato stated:
“In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors. In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation.”
This collaborative effort signals a shared commitment to leveraging collective strengths in technology, innovation, and operational excellence to build a more resilient and competitive future for the global automotive industry.
Potential Synergies and Collaborative Goals
The collaboration aims to create synergies in several key areas:
- Scale advantages through standardized vehicle platforms: Standardizing vehicle platforms across product segments will reduce costs, enhance efficiencies, and improve investment returns.
- Enhancement of research and development capabilities: Integrated R&D functions will improve technology expertise while reducing development costs.
- Optimization of manufacturing facilities and systems: Shared use of production lines and energy services will enhance capacity utilization and decrease fixed costs.
- Strengthening supply chain competitiveness: A unified approach to purchasing and collaboration with suppliers will boost overall competitiveness.
- Operational efficiency improvements: Integration of systems and back-office operations will streamline processes and reduce operational costs.
- Integration in sales finance functions: Expanded sales finance operations will offer better mobility solutions and financial services to customers.
- Building a strong talent foundation: Increased collaboration will foster talent exchange, skill development, and better access to global talent pools.
If realized, Nissan and Honda project a combined sales revenue exceeding 30 trillion yen and an operating profit of more than 3 trillion yen. The companies aim to become a globally competitive mobility powerhouse while delivering innovative solutions and products worldwide.
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Roadmap to Integration
The integration discussions are being managed by an integration preparatory committee, tasked with facilitating collaboration and conducting focused evaluations. The roadmap includes:
- Board resolution and MOU execution: December 2024
- Execution of a definitive agreement: June 2025
- Shareholder meetings: April 2026
- Establishment of a joint holding company and delisting of Nissan and Honda shares: August 2026
The new holding company will be listed on the Tokyo Stock Exchange (TSE), ensuring continuity for shareholders and market stability.
Conclusion and Outlook
As discussions progress, the collaboration between Nissan, Honda, and Mitsubishi Motors represents a pivotal moment in the evolution of Japan’s automotive industry. Through the integration of management resources, technological expertise, and operational efficiencies, the companies aim to address industry challenges, respond to market changes, and enhance their collective global competitiveness.
The integration’s success will depend on seamless collaboration, timely execution, and the realization of synergies across development, manufacturing, and sales operations. Together, Nissan, Honda, and Mitsubishi Motors aim to drive innovation, set industry benchmarks, and deliver exceptional value to customers worldwide.
This unified approach not only marks a milestone for the three automotive giants but also reflects a broader vision for a sustainable, intelligent, and electrified future of mobility.
