Japan’s Nissan could seek partnership with Honda, TV Tokyo says
© Reuters. FILE PHOTO: Nissan Motor’s EV model Sakura is charged at a charging station in Yokohama, Japan, Nov. 3, 2023. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO (Reuters) -Japan’s Nissan (OTC:) Motor is considering seeking a business partnership with Honda (NYSE:) Motor, TV Tokyo reported on Wednesday, citing unidentified sources.
Nissan’s board of directors decided in a meeting on Tuesday to consider a potential collaboration with its larger Japanese rival, the report said, without providing details on the type of partnership Nissan might seek.
A Nissan spokesperson declined to comment on the report, and said he did not know whether its board of directors met on Tuesday.
A Honda spokesperson said there was nothing the company could say about the report, adding it was not something it had disclosed.
Nissan intends to sign a non-legally binding memorandum of understanding with Honda, TV Tokyo said, adding the areas in which they would consider to team up remained undecided.
Nissan’s global sales stood at 3.3 million vehicles in 2023, compared with nearly 4.0 million at Honda over that period, with both reporting a rise in overall global sales last year.
Both companies lost share in the world’s top auto market China last year amid heavy competition from BYD (SZ:) and other electric vehicle makers. Both may cut production in the country, the newspaper said on Tuesday.
Among other Japanese automakers, the only one to sell more vehicles than Nissan and Honda last year was the world’s No. 1 automaker Toyota Motor (NYSE:).
