Japanese automakers Nissan Motor Corporation and Honda Motor Company confirmed on Wednesday that they are discussing closer cooperation, while denying reports that they have decided to merge.
Nissan's share price rose more than 22 percent in Tokyo after reports, citing unnamed sources, said it could join Honda to form the third-largest automaker group. in the world, AP reports. Honda's share price, on the other hand, fell 3 percent.
According to reports, Nissan alliance member Mitsubishi Motors Corporation is also involved in the talks.
All three Japanese automakers announced in August that they planned to share electric vehicle components, such as batteries, and work together on autonomous driving programs to better adapt to dramatic changes in the auto industry. centered around electrification.
A preliminary agreement between Honda, Japan's second-largest automaker, and Nissan, the third-largest, was announced in March.
Trading in Nissan's shares was suspended but later resumed after the companies jointly issued a statement saying they were "examining various opportunities for future cooperation, but no decision has been made."
A merger of the companies could result in a behemoth worth about $55 billion, based on the market value of all three automakers.
Joining forces would help the two companies increase their weight to compete with Japanese market leader Toyota Motor Corporation and Germany's Volkswagen AG.
The rise of Chinese automakers is shaking up the industry at a time when manufacturers are facing trouble transitioning from gasoline-powered vehicles to electric ones.
Toyota has produced 11.5 million vehicles in 2023, while Honda has released 4.2 million and Nissan has produced 3.4 million. Mitsubishi Motors has produced just over 1 million.
Even in the event of a merger, Toyota would remain the largest Japanese automaker./REL (A2 Televizion)
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