Honda and Nissan reportedly begin merger talks

Earlier this month, reports surfaced that Honda was considering taking a stake in Nissan. Fast forward to today, and a merger appears to be on the table.

According to Nikkei, the two companies have begun merger talks. However, Reuters noted that the automakers did not confirm or deny this, as they issued a statement saying that the previously announced partnership meant they were “exploring various possibilities for future collaboration, leveraging each other’s strengths.” The companies went on to say that shareholders would be notified of any updates.

More: Mitsubishi, Nissan and Honda officially join forces

This suggests something may be brewing, as neither company has outright denied it. Quite the contrary, as they hint at possible future news. This echoes previous reports suggesting Honda could take a stake in Nissan as early as next month.

While only time will tell what happens, Nikkei says the two companies are considering operating under a holding company that could also include Mitsubishi. If the plan succeeds, the merger could be the largest since Stellantis was created.

Assuming the merger goes through, the new “company” could include Acura and Honda as well as Nissan, Infiniti and Mitsubishi. It will also be interesting to see how the Renault-Nissan-Mitsubishi Alliance gets involved, but that’s anyone’s guess at this point.

That said, reports of the talks come at a time when Nissan is struggling in several markets. As we previously reported, Nissan’s U.S. sales have dropped 26.3% over the past decade, while Infiniti’s sales have plummeted nearly 45%. The company is also struggling in China, a common theme among many foreign brands today.