Auto expert Mike Caudill joins ‘Cavuto: Coast to Coast’ to discuss the likelihood of a merger between Honda and Nissan and how it could impact the brands.
Nissan and Honda responded on Wednesday to reports that a potential merger of the companies could be at risk of being abandoned.
The Wall Street Journal, citing people familiar with the matter, reported that Nissan was weighing backing out of the memorandum of understanding with Honda and other options after the company found terms put forward by Honda to be “unacceptedable.” Nissan planned to reject an idea Honda had of Nissan being one of its subsidiaries, according to the outlet.
The Wall Street Journal, citing people familiar with the matter, reported that Nissan was weighing backing out of the memorandum of understanding with Honda and other options after the company found terms put forward by Honda to be “unacceptedable.” (Getty Images / Getty Images)
A Reuters report also indicated Nissan could halt discussions.
Nissan said Wednesday in a statement to FOX Business the two companies “planned to decide on the direction of the management integration by the end of January, but Integration Preparatory Committee discussions are ongoing.”
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The integration preparatory committee was set up by Nissan and Honda for discussions of a possible merger.
Nissan “aim[s] to finalize our direction by mid-February and will announce it at that time,” the company said.
Nissan logo seen on Nissan vehicle parked in Krakow center, on Monday, April 17, 2023, in Krakow, Poland. ((Photo by Artur Widak/NurPhoto via Getty Images) / Getty Images)
Honda, meanwhile, said Wednesday that it is “still in discussions,” but declined to provide more details.
The reports of turmoil came about six weeks after Nissan and Honda revealed they had inked a memorandum of understanding weighing merging their companies via a joint holding company.
NISSAN, HONDA ANNOUNCE PLANS TO CONSIDER MERGER
In late December, the automakers said in a press release that the memorandum “aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide.”
A merger of Honda and Nissan, if it comes to fruition, could result in the formation of a company that would be the world’s third-largest automaker.
The logo of Honda seen at a dealership store. Honda is a Japanese multinational automotive manufacturing company. (Photo by Igor Golovniov/SOPA Images/LightRocket via Getty Images / Getty Images)
The companies could seek to “integrate their respective management resources such as knowledge, human resources, and technologies; create deeper synergies; enhance the ability to respond to market changes; and expect to improve mid- to long-term corporate value” should they agree to a merger, Nissan and Honda said in December.
WHAT A HONDA-NISSAN MERGER COULD MEAN FOR THE AUTO INDUSTRY AND CONSUMERS
Honda makes vehicles under its namesake brand and Acura. Nissan counts Nismo, Autech and Infiniti among its brands.
The number of vehicles Honda produced in 2024 totaled over 3.7 million, the automaker said in late January. Globally, Nissan made over 3.1 million in the same year.
Honda’s market capitalization hovered around $50.11 billion as of Wednesday. Nissan’s stood at $9.44 billion.
