A FAMOUS car brand said to be “on the brink of collapse” is in talks with a rival firm over a shock “merger”.
The amalgamation of the famous Japanese car makers would create a new “automatic powerhouse”.
The Japanese brands have already deepened ties this year and could confirm talks as early as next week[/caption]
It has been revealed that Honda and Nissan are exploring the possibility of joining forces after years of competing in the industry.
If the plans were successful, the company could sell more than seven million vehicles a year.
The strategic partnership has specifically set out plans for EVs.
First reported by Nikkei, a Japanese business newspaper, neither company have officially confirmed or denied the talks.
However, the article stated: “If there are any updates, we will inform our stakeholders at the appropriate time.
“It was not something that has been announced by either company.”
According to TV channel TBS, the two companies could confirm their considerations to join forces as early as next week.
The merger would involve Japan’s number two and number three car manufacturers, with expected scrutiny over any final decisions.
In March, Honda and Nissan agreed to cooperate their EV businesses.
Then five months later they confirmed plans to work on batteries and some technology together.
Both have already agreed to work with Mitsubishi Motors in discussions of intelligence and electrification.
The BBC reports that the two brands combined sales for last year equate to 7.4 million vehicles.
However, the boom of EVs has seen both Honda and Nissan struggle to compete with market shares in China.
Jesper Koll, from Japanese online trading platform operator Monex Group, spoke to the BBC.
He said: “Is this really just rearranging the deck chairs on the Titanic in the sense that neither Honda nor Nissan really have any products or any technologies that global consumers want?”
“From that perspective, it’s a nice rescue but it’s not creating a new national champion.”
