Honda and Nissan initiate merger talks as Chinese EVs dominate market

[Anchor]

Japanese automobile companies Honda and Nissan have entered into merger discussions.

The news that the two competing companies may join forces has stirred the global automotive industry.

There are analyses suggesting this move is to counter the rapidly dominating Chinese electric vehicles.

Our special correspondent Hwang Jin-woo reports from Tokyo.

[Report]

The news that Honda and Nissan are discussing a merger has caused a stir in Japan.

While the two companies maintain their official statement that nothing has been decided, Japanese media are creating an atmosphere that treats the merger as a foregone conclusion.

[Mibe Toshihiro/Honda President: "We are considering collaboration and discussing other possibilities..."]

The merger is being discussed as a plan to establish a holding company that would oversee both companies while they continue to operate under their respective brands.

There are predictions that the two companies will sign a memorandum of understanding next Monday.

If the world’s 7th and 8th largest companies, which have been competitors, merge, they will surpass Hyundai Motor Group to become the 3rd largest in the world.

The discussions between Honda and Nissan about a merger are more than just a simple expansion.

[Kim Il-ki/Japanese management consultant: "The integration of Nissan, which is strong in electric vehicles, and Honda, which is weak in electric vehicles, has significant meaning. It can share investment costs and enhance competitiveness in the global market effectively..."]

Japanese automobile companies that once dominated the Southeast Asian market have recently struggled against Chinese electric vehicles that emphasize price competitiveness.

Some analysts suggest that Taiwan's Foxconn, the manufacturer of Apple's iPhone, has shown interest in acquiring Nissan, which has accelerated the merger discussions between Nissan and Honda.

Reporting from Tokyo, KBS News, Hwang Jin-woo.