Nissan needs to triple profit to pass Honda's merger test

Estimated goal of $2.6bn by fiscal 2026 seen showing that Nissan can stand on its own

Nissan Motor is projected to earn just a tenth of Honda Motor's operating profit this fiscal year. (Nissan Motor)

KAZUHIRO NOGUCHI, Nikkei staff writer

January 16, 2025 03:01 JST

TOKYO -- Honda Motor has estimated that Nissan Motor will need to at least triple its annual operating profit by fiscal 2026 for their planned integration to be successful, the automakers' presentation on the merger suggests.

"The integration will not be realized unless Nissan and Honda execute it as two companies that are able to stand on their own feet," Honda President and CEO Toshihiro Mibe said in a joint press conference last month announcing the signing of a memorandum of understanding. Mibe said that an improvement to Nissan's earnings is a "condition of the MOU."