Nissan and Honda have signed a document allowing them to discuss a merger (Image: Getty)
The giants and have signed a document to begin discussions that could potentially see the two companies merge.
The heads of both brands signed a Memorandum of Understanding (MOU), a non-binding agreement that could lead to the two companies partnering in order to exchange .
Makoto Uchida, President of , noted that , who have been in a previous partnership with the company since 1999, will also be involved in talks.
He explained: ” and Nissan have begun considering a business integration, and will study the creation of significant synergies between the two companies in a wide range of fields.
“It is significant that Nissan’s partner, Mitsubishi Motors, is also involved in these discussions. We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base.”
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If the merger goes ahead, the brands would be able to share technology to lower development costs (Image: Getty)
Nissan and Mitsubishi have both been in an alliance with Renault Group for the past 25 years, with all three companies supporting one another to share a range of vehicle platforms, mechanicals, and technology.
However, with Renault Group rumoured to have plans that can see their stake in Nissan reduced, the Japanese car companies have been actively seeking new partners in the next 12 months.
Renault Group aknowledged the news, with a spokesperson stating that the French company will “consider all options based on the best interest of the Group and its stakeholders”.
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The move comes as Renault, Nissan’s partner since 1999, plans to reduce their stake in the brand (Image: Getty)
Toshihiro Mibe, Director of Honda, stated that the new partnership could mark a huge change for the automotive industry and will therefore be discussed seriously.
He added: “At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors’ participation in the business integration discussions of Nissan and Honda will lead to further social change, and that we will be able to become a leading company in creating new value in mobility through business integration.
“Nissan and Honda will start the discussion from today onwards, with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors.”
Whilst there is no guarantee that Honda and Nissan will merge under the new agreement, a number of motoring experts have stated that the partnership could create fierce competition from the rising Chinese car industry.
In spite of both companies producing some models in the country, many brands unique to China are beginning to be exported to European nations, often at substantially lower prices than Western rivals.
By sharing their technology, some have argued that the partnership could help to cut the cost of developing new vehicles, helping to reduce the overall price consumers will need to pay.