1. Wait, will there finally be a merger?
Honda and Nissan have officially announced plans to merge. They aim to become the world’s third-largest automaker by sales volume. This is not a drill, folks. The merger is driven by the bad sales performance of Nissan’s Infiniti brand, the shift towards electric vehicles (EVs), and increasing competition. A Memorandum of Understanding was signed in December 2024, with plans to finalize negotiations by June 2025. The holding company will be established by August 2026.
2. What do Honda and Nissan spend on advertising?
Let’s talk money. In 2023, American Honda Motor Company’s ad spend was US $324.83 million, according to Statista. Nissan’s ad spend in 2023 included approximately $369.63 million on television and over $100 million on digital platforms. In comparison, top automotive advertisers, General Motors and Ford, spent US $3.5 billion and US $2.7 billion in advertising in 2023, according to The Nissan-Honda Merger, which will likely influence how these budgets are allocated in the future.
3. How many dealerships do each of these companies have?
Local dealers are the ultimate contact point with car users and prospects, making them a major force in automotive marketing. As of late 2024, Honda operated 1,073 dealerships across the U.S., while Nissan operated 1,071 dealerships. The Nissan-Honda Merger could streamline these networks, potentially creating a more integrated dealership structure. This is particularly the case for Nissan’s Infiniti brand. Infiniti’s negative sales performance has already prompted the consolidation of Infiniti and Nissan dealerships in the U.S.
Infiniti’s negative sales performance has already prompted the consolidation of Infiniti and Nissan dealerships in the U.S.
4. Which agencies provide marketing services to Nissan/Infiniti?
5. Which agencies provide marketing services to Honda?
6. What does the 2021 Stellantis merger tell about the potential outcome of the Nissan – Honda merger?
The Stellantis merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA in January 2021 offers a glimpse into potential outcomes for the Nissan-Honda merger. Stellantis focused on a unified brand portfolio strategy, with tailored marketing for each of its 14 brands, such as Jeep, Ram, and Chrysler. The merger increased advertising efficiency by centralizing operations and consolidating agencies, leading to better rates with media outlets. Stellantis also emphasized electrification, digital marketing, and multicultural marketing. This suggests that decision-makers at the new Nissan-Honda merger might:
●Consolidate Agencies: Reduce the number of agencies to cut costs and streamline campaigns.
● Centralize Marketing: Combine marketing operations to enhance efficiency and negotiate better rates.
●Brand Differentiation: Maintain individual brand identities while cross-promoting when advantageous.
●Increase Digital Efforts: Ramp up digital marketing, data-driven targeting, and virtual showrooms.
● Focus on EV Messaging: Promote their commitment to electric vehicles.
7. How are Nissan and Honda faring in U.S. automotive sales?
Honda just reported that in 2024, American Honda posted annual sales of 1,423,857 Honda and Acura vehicles, an increase of 8.8% year over year. However, the mother company, Japan’s Honda Motor, reported a surprise 15% drop in second-quarter operating profit in November, missing analysts’ expectations as it suffered a sharp sales decline in China.
Nissan Group announced total calendar year 2024 U.S. sales of 924,008 units, an increase of 2.8%. Nissan brand car sales in the US increased by 3.8% to 865,938, while Infiniti brand deliveries were down 10.2% to 58,070 vehicles. Infiniti’s sales performance has been very negative, with the brand revealing it only sold 42,567 new cars in the U.S. in the nine months to September 2024 – down from 87,934 vehicles sold during the same period in 2019. This is why Infiniti decided to shut down stand-alone premises in the US and merge with existing Nissan dealerships across the country. The decision follows Nissan insiders revealing last month the brand had just “12 months to survive” after major European investor Renault signaled plans to scale back its interests in the company.
Nissan Group announced total calendar year 2024 U.S. sales of 924,008 units, an increase of 2.8%. Nissan brand car sales in the US increased by 3.8% to 865,938, while Infiniti brand deliveries were down 10.2% to 58,070 vehicles. Infiniti’s sales performance has been very negative, with the brand revealing it only sold 42,567 new cars in the U.S. in the nine months to September 2024 – down from 87,934 vehicles sold during the same period in 2019. This is why Infiniti decided to shut down stand-alone premises in the US and merge with existing Nissan dealerships across the country. The decision follows Nissan insiders revealing last month the brand had just “12 months to survive” after major European investor Renault signaled plans to scale back its interests in the company.
General Motors (GM) and Toyota are the top two U.S. carmakers in terms of sales, and they have much higher sales figures than Honda or Nissan. For the year, GM expanded overall sales by 4% to 2.7 million vehicles, its highest total since 2019. GM estimates its 2024 market share in the U.S. at 16.5%. Comparatively, Honda’s share lies at around 7%. GM brands include Chevrolet, GMC, Buick, and Cadillac. GM’s Chevrolet reported 1.55 million units sold year-to-date in November 2024, experiencing a slight decline of 0.7% compared to the prior year. Even with a slight decrease, Chevrolet sales are much higher than Nissan or Honda’s. Toyota Motor North America, on its part, reported year-end 2024 U.S. sales of 2,332,623 vehicles, an increase of 3.7 percent on a volume basis.
8. How are Nissan and Honda doing in terms of the U.S. Hispanic consumer?
In 2024, Nissan was the second largest automotive OEM in sales to Hispanics after Toyota, while Honda was the fifth largest, according to S&P Global Mobility. Honda’s sales to Hispanics account for 22.7% of its total sales in 2024, but they have declined by -2% from five years ago. Nissan was in fourth place in 2019 but fell to fifth after five years. 23% of Nissan’s sales come from Hispanic buyers, yet the company has suffered a -22.76 % decrease from five years ago.
This suggests that both Honda and Nissan have work to do regarding the Hispanic consumer. Honda’s Hispanic media initiatives include Honda Stage, activated through La Agencia de Orci. Carmakers are big advertisers regarding the Hispanic demographic; efforts include last year’s Toyota Spanish-language Super Bowl ad.
This suggests that both Honda and Nissan have work to do regarding the Hispanic consumer. Honda’s Hispanic media initiatives include Honda Stage, activated through La Agencia de Orci. Carmakers are big advertisers regarding the Hispanic demographic; efforts include last year’s Toyota Spanish-language Super Bowl ad.
Honda had – 1.99 % 5-year Hispanic vehicle sales growth, while Nissan -22.76%.
9. How will Music and Sports sponsorship be impacted?
Both Nissan and Honda are substantial investors in experiential marketing initiatives and major sports and music sponsorships.
Here’s a glimpse into their sponsorship strategies:
