Honda and Nissan confirm merger plans

The agreement comes as a lifeline for Nissan, which has been struggling financially as sales have fallen in recent years.

Honda and Nissan confirm merger plans

It's a Christmas miracle for Nissan as the struggling automaker seeks some financial help following its recently confirmed merger with Honda. The two Japanese car giants, along with Mitsubishi, today confirmed their plans to merge. This follows reports last week that a merger was in the works. If the talks go through, the partnership would create the world's third-largest automaker by sales volume.

The talks come as Nissan continues to struggle financially. The automaker confirmed last week that it would allow some Infiniti dealerships to merge with nearby Nissan stores in an effort to save costs. The company also previously announced plans to reduce its workforce and restructure its corporate layout, while CEO Makoto Uchida took a 50 percent pay cut.

Uchida commented on today's announcement, saying in a press release: "We expect that if this integration is realized, we will be able to provide even greater value to a broader customer base."

Over the next six months, the automakers will discuss merging their operations into a single holding company, with the goal of completing the venture by August 2026. Honda CEO Toshihiro Mibe said the companies decided they could better navigate the changing industry together.

"At this time of change in the automotive industry, which is said to occur once in 100 years, we hope that Mitsubishi Motors' participation in Nissan and Honda's business integration discussions will lead to further social change and that we can become a leading company in creating new value in mobility through business integration," he said.

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It's a Christmas miracle for Nissan as the struggling automaker seeks some financial help following its recently confirmed merger with Honda

The talks come as Nissan continues to struggle financially