Nissan and Honda announced that they are negotiating a global merger agreement

In a global automotive industry that has been shaken by the crisis of emblematic companies, as is the case with Volkswagen in Germany or in Group Stellantis In Europe, attention has also been focused on Nissan for weeks.

The Japanese company is looking for a reference investor, since Renault, his partner for years, anticipated that he will sell his participation to Slingas reported days ago by the Financial Times.

The financial newspaper also reported that the future of nissan It has an expiration date. A senior Nissan official was quoted as saying: “We have 12 or 14 months to live”. This is going to be difficult. And finally, we need Japan and the United States to generate cash.”

In this context, Nissan and Sling They reported today in a statement that they are in talks to reach an agreement, but at the moment they did not offer details or deadlines to complete this possible agreement. It is also unclear what form the potential joint venture could take.

“As announced in March, Honda and Nissan are exploring several possibilities for future collaboration, leveraging each other’s strengths,” the companies said in a statement, according to information published by CNN. “If there is any development, we will inform our stakeholders at the appropriate time,” they added.

Given this official news, the Tokyo Stock Exchange temporarily suspended trading in the shares of the automobile company Nissan Motorclaiming that it needs to “verify media reports” about a possible merger between the company and the firm in the same sector Honda Motor. Hours later the quote resumed.

Nissan has an alliance with Renault SA that is under review. It recently announced a cut of 9,000 employees and a reduction in its global production by a fifth due to lower-than-anticipated sales in China and the United States.

The history of these two companies goes back years when the French, with the Lebanese born in Brazil, Carlos Ghosn, took control of the Japanese.

Ghosn attempted a merger between Renault, Nissan and Mitsubishi, which Tokyo thwarted by trying to put him in prison but Ghosn managed to escape.

Now, Nissan and Honda announce that they are considering merging to create the world’s No. 3 automaker in volume, with sales of US$52 billion.

Both companies had already announced collaborations in March of this year, focused on the joint development of software, batteries and other components for electric vehicles. However, moving towards a total merger would imply greater integration, allowing the sharing of resources and technology in a market that demands constant innovation.

The potential merger could also respond to a change in the global regulatory landscape. In the United States, it is anticipated that policies supporting electrification may change under the incoming Donald Trump administration, which could influence the investment and production strategies of the companies involved.