See what you click on FoxBusiness.com.
Hondamotors It and Nissan Motor are reportedly in the process of merging their companies and negotiations will begin soon, according to Japanese media.
The news, which was first reported by the Nikkei newspaper on Tuesday, comes as both auto giants struggle to compete with the world’s biggest electric vehicle (EV) makers, including Tesla and Chinese automaker BYD.
Merger plans have not been confirmed by either company. On Tuesday, both companies released identical statements pouring water on the reports.
“As announced in March of this year, Honda and Nissan are exploring several possibilities for future collaboration, leveraging each other’s strengths,” the companies said in separate statements.
MILLIONS OF CAR OWNERS ARE DELAYING MAINTENANCE REPAIRS AS COSTS INCREASE
Nissan and Honda are reportedly in talks to merge their companies. (Getty Images/Getty Images)
Honda and Nissan are Japan’s second and third largest automakers, respectively, with Toyota leading both.
The respective market capitalizations of Honda and Nissan are approximately 5.95 trillion yen ($38.8 billion) and 1.17 trillion yen ($7.6 billion).
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Honda and Nissan are Japan’s second and third largest automakers, respectively, with Toyota leading both. (Kyodo via Reuters Connect / Reuters Photos)
In November, Nissan cut its global workforce at 9,000 in a series of massive layoffs, decreasing its global production capacity by 20%.
At that time, the company explained that it was “facing a serious situation” and outlined a plan to achieve “healthy growth.” The goals included reducing fixed costs by 300 billion yen (about $1.9 billion) and variable costs by 100 billion yen (about $649 million).
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
The respective market capitalizations of Honda and Nissan are approximately 5.95 trillion yen ($38.8 billion) and 1.17 trillion yen ($7.6 billion). (Ty Wright/Bloomberg via Getty Images/Getty Images)
“The company is implementing various measures to reduce selling, general and administrative expenses, lower the cost of goods sold, rationalize its asset portfolio and prioritize capital expenditures and investments in research and development,” Nissan said in a statement at the time.
Reuters’ Elizabeth Pritchett and FOX Business contributed to this report.
