Last month, Nissan revealed plans to reduce its global workforce by 9,000 jobs and cut 20% of its production capacity following a sharp decline in sales in crucial markets like China and the U.S.
Meanwhile, Honda reported disappointing earnings due to a drop in sales in China, though its strong performance in motorcycle and hybrid vehicle segments provided some financial stability.
The two companies would aim for combined sales of 30 trillion yen ($191 billion) and operating profit of more than 3 trillion yen through the potential merger, their chief executives said during a press conference on Monday.
They aimed to finalize discussions by June 2025 and establish a holding company by August 2026, at which point both companies’ shares would be delisted.
