Honda offers Nissan its subsidiary

Japanese Honda Motor Co. has sounded out Nissan Motor Co. about becoming its subsidiary, Kyodo writes.

It is noteworthy that the original plan, officially announced in December 2024, suggested the integration of the businesses of the two corporations through the creation of a joint holding company. It is not yet known how Nissan plans to respond to Honda’s proposal.

The proposed alliance between the two major Japanese conglomerates is viewed by local analysts as a response to the growing competition from Chinese automakers in the electric vehicle market. Should there be a merger, the global automotive industry would create the world’s third-largest corporation, trailing only Japan’s Toyota and Germany’s Volkswagen.

Experts believe that such a move would attract investments for more active competition against American Tesla and Chinese BYD, which are leaders in the global electric vehicle market.