We learned earlier that Nissan and Honda were considering a merger, and now it's official. Nissan and Honda will establish a joint holding company that will become the parent company of both carmakers. This will create the world's third global auto group by vehicle sales behind Toyota and Volkswagen.
Nissan turned to its home rival and partner, Honda, to save it from its difficult financial situation. With an aging and unattractive lineup, Nissan took a hit when its former partner, Renault, announced its intention to sell its share in the Japanese carmaker. This will mark the end of a 25-year partnership that saved the company in 1999 from another crisis. Many believe that the Renault-Nissan Alliance only worked thanks to the genius of Carlos Ghosn, Renault's CEO at the time.
Earlier rumors that the two companies are considering a merger have been officially confirmed after signing a memorandum of understanding (MOU). This precedes talks about a business integration between the two companies through the establishment of a joint holding company. The new company will be created through a joint share transfer, with the holding becoming the parent company of both carmakers.
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