Honda, Nissan Reportedly Talking About A Merger
Japanese automakers Honda and Nissan are reportedly in preliminary talks about a potential merger to strengthen their position against Tesla and Chinese electric vehicle manufacturers, according to media reports on Wednesday.
In a separate development, Bloomberg reported that Taiwanese tech giant Foxconn, officially known as Hon Hai Precision Industry, has approached Nissan with an offer to take a controlling stake in the company.
Following the news, Nissan's stock surged by as much as 24 percent, while Honda's shares fell more than 2 percent. Mitsubishi Motors, in which Nissan holds the largest share, saw its stock rise by 13 percent.
Honda and Nissan, the second and third largest car manufacturers in Japan after Toyota, had previously agreed in March to explore a strategic partnership focused on electric vehicles.
A Honda spokesperson confirmed the ongoing discussions, stating, We are exploring potential areas of cooperation in various fields, including the latest reports, but nothing has been finalized.