Honda Motor and Nissan Motor are reportedly within the technique of merging their corporations and are set to begin negotiations quickly, in accordance with Japanese media.
The information, which was first reported by the Nikkei newspaper on Tuesday, comes as each auto giants battle to compete with the most important world electrical automobile (EV) makers, together with Tesla and Chinese language automaker BYD.
The merger plans haven’t been confirmed by both firm. On Tuesday, each corporations launched an identical statements tossing water on the stories.
“As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” the businesses stated in separate statements.
Honda and Nissan are the second and third-largest auto producers in Japan, respectively, with Toyota main them each.
The respective market capitalizations of Honda and Nissan are roughly 5.95 trillion yen ($38.8 billion) and 1.17 trillion yen ($7.6 billion).
In November, Nissan lower its world workforce by 9,000 in a set of large layoffs, diminishing its world manufacturing capability by 20%.
On the time, the corporate defined that it was “facing a severe situation” and laid out a plan to realize “healthy growth.” The targets included decreasing fastened prices by 300 billion yen (round $1.9 billion) and variable prices by 100 billion yen (roughly $649 million).
“The company is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development,” Nissan stated in an announcement on the time.
