- Nissan and Honda have signed a joint agreement to explore a merger
- A potential merger worth more than $US50 billion
- The deal is expected to be complete by mid-2026
DMARGE recently covered Nissan’s colourful past with its highly controversial CEO escaping Japan in a piano box, but this was just the beginning of the automaker’s woes.
Nissan, known for its early strides in electric vehicles with the Leaf and its iconic beast GT-R, a car that’s earned a cult following in Australia and beyond, is merging with Honda, a company that’s not only a leader in hybrids but also a dominant force in Formula 1.
Honda’s recent success in Formula 1, supplying power units for Oracle Red Bull Racing, underscores its technological prowess and relentless pursuit of performance. This partnership could redefine their combined automotive future. It could also mean a bigger involvement in the sport with more power trains for more teams.
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Also, remember Honda will launch a full-scale return to Formula 1 in 2026 as the works power unit supplier to Aston Martin. This will inevitably give Aston Martin more access and resources to Nissan and Renault’s now-defunct F1 technology.
The finer details of the mega-deal are yet to be announced. Still, industry insiders are already predicting the creation of a powerhouse that can produce better cars faster and reduce costs. For anyone who’s been keeping tabs on the EV arms race, this is a bold move designed to keep Nissan and Honda in the game. Honda, in particular, was extremely late to the EV party, so maybe they only have themselves to blame to the merger.
“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” Nissan’s CEO Makoto Uchida said in a statement.
A merger could result in a deal worth more than $US50 billion (AU$79.9 billion) based on the market capitalisation of all three automakers.
Honda and Nissan’s alliance with Renault and smaller automaker Mitsubishi Motors would give them the scale to compete with Toyota and Volkswagen AG.
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.
Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida
The Decade’s Biggest Corporate Hookups
Mergers like this aren’t rare—the past decade has seen its fair share of corporate pair-ups, with some producing magic and others… not so much. One of the most notable examples? The birth of Stellantis in 2021. When Fiat Chrysler and PSA Group decided to merge, they brought 14 brands (including Jeep, Peugeot, and Maserati) under one umbrella, creating a juggernaut that is still struggling to fire on all four.
Over in the tech world, Dell and EMC made waves with their $67 billion merger in 2016, betting big on cloud computing and data storage. And who could forget Disney’s 2019 takeover of 21st Century Fox? The deal gave Disney control of everything from the X-Men to The Simpsons, not to mention the scale to take on Netflix with Disney+.
Even airlines got in on the action. The merger of American Airlines and US Airways in 2013 turned them into the world’s largest airline by passenger numbers. Not all mergers are smooth, but they can change entire industries when they work, as we’ve seen with successful mergers in the past.
So, What Happens When Big Companies Merge?
Mergers aren’t just about signing contracts, popping champagne and cashing out. Merging corporate cultures and, often, cutting excess fat. Layoffs, restructuring, and plenty of PowerPoint presentations.
Why? Synergy. It’s corporate jargon for “getting more bang for your buck,” whether it’s through shared tech, streamlined supply chains, or combining brainpower to innovate faster. But it’s not always smooth sailing.
When done right, though, a merger can be a game-changer. It’s about finding that sweet spot where two companies come together and create something better than they could ever achieve alone or simply just survive.
What Will This Mean for Consumers?
If you’re wondering how the Nissan-Honda merger affects the average car buyer, the answer depends on how well they execute their grand plan.
In theory, it should mean better cars, faster innovation, and maybe even more affordable EVs as costs are shared.
But there’s also the risk of less competition. Fewer carmakers could mean fewer choices and higher prices. It’s a fine balance between giving consumers more value and not monopolising the market.
We’ve seen it happen in other industries. When airlines merge, ticket prices often creep up. In tech, fewer competitors mean market domination and less evolution.
The Nissan-Honda merger is a big deal not just for Japan but for the global auto industry. It’s a survival move, a flex, and a sign of the times. Something that’s a reflection of our awful global economy that’s showing no signs of improving in 2025.
With the pace of change accelerating, companies like Nissan and Honda struggle to go it alone. The deal is expected to be complete by mid-2026.
For a deeper dive into Nissan’s recent history, including its financial struggles and the infamous escape of ex-CEO Carlos Ghosn in a piano box, check out DMARGE’s recent coverage here.
Read the official statement from Honda here.
