This information comes after the economic newspaper Nikkei reported on Wednesday that both firms would be ready to start talks on a possible merger, with a view to joining forces and facing competition in electric vehicles from Chinese and American firms, such as BYD. or Tesla.
Both manufacturers are losing market in China, where national firms, which offer more affordable prices, gain ground.
The eventual merger of the two companies would give rise to the third largest automobile group in the world by sales volume, behind the also Japanese Toyota Motor and the German Volkswagen AG.
Given the information about the hypothetical merger, both companies admitted in independent statements that they were “exploring various avenues for future collaboration, taking advantage of the strengths of each”but they ruled out that what was reported by the media was “something announced by any of the companies.”
“We cannot comment on speculation,” responded a Nissan spokesperson when asked by EFE about the start of negotiations with Honda, with which it would join in a holding company.
Last March, Nissan revealed that it was in talks with Honda for the possible creation of an alliance in the production of components and ‘software’ for electric vehicles, with a view to reducing costs and enhancing their competitiveness in the midst of the expansion of this market.
In August, the Japanese automobile brand Mitsubishi Motors, of which Nissan owns 34%, joined the negotiations to be part of the hypothetical alliance.
The information about the possible merger came after the Taiwanese giant electronics company Hon Hai Precision Industry reportedly expressed interest in acquiring part of Nissan.
In response, Yokohama-based Nissan would have accelerated its contacts with Honda with a view to avoiding the purchase offer from the Taiwanese company also known as Foxconn, interested in its electric vehicle development capabilities as well as its manufacturing technology, according to Nikkei.
The same source set next Monday as the date for the start of talks between Nissan and Honda to negotiate their merger.
Nissan recorded a 93.5% year-on-year drop in its net profit last April-September, mainly attributed to its worse sales in China.
After the first news about the eventual merger of both companies became known on Wednesday, Nissan appreciated by 23% on the Tokyo Stock Exchange, unlike Honda, which fell by 3%.
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