By Steven Symes 
After rumors of an impending merger, Honda and Nissan officially announced today the two companies are moving forward together. While it will take time for things to play out, the results of this merger between the two Japanese automakers could shift the entire auto industry globally. Whether that’s in the positive or negative sense remains to be seen.
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In a joint press release issued today, Nissan and Honda say they’ve signed a memorandum of understanding to start discussing what a merger between the two would look like. Just like it was rumored, the automakers are looking at establishing a joint holding company.
This can mean a lot of things, leaving us with many questions which won’t be answered anytime soon. But the companies have made it clear they’re looking at conducting joint research in technologies like “next-generation software-defined vehicles,” a term that makes many enthusiasts’ skin crawl. After all, driving a vehicle that’s akin to an iPhone or Android doesn’t sound fun.
That means the two would be working together to crack the code on electrification and artificial intelligence in future cars. Thanks to steep costs associated with those cutting-edge technologies, among others, we expect to see more mergers or even hostile takeovers, like Toyota and Mazda potentially tying the knot.
There’s also the looming threat of Chinese automakers as they take over their domestic market and look to other shorelines for conquest. If you thought the automotive market would stay how it’s been for the past couple of decades, you’re going to be disappointed.
After all, there have been a number of big shifts just in the past few years, like the creation of Stellantis and some storied European automakers being acquired by Chinese companies, namely Lotus, MG, and Volvo.
Change will be the order of the day in the auto industry moving forward, so hold onto your hats, the ride’s going to be pretty wild.
Speaking about the merger news, Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida said, “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Karl Brauer, iSeeCars Executive Analyst, has his own take on this development, saying, “It will be years before we know if this one was successful, and if the merger fails it will likely leave both brands weaker than before they started.” He notes Honda comes with financial strength but lacks size, while Nissan is the opposite. Perhaps the two will help each other out in that respect.
Image via Honda, Nissan