Two of Japan's biggest automakers, Honda and Nissan, are planning to merge in a move that could shake up the global auto industry. If the deal goes through, the combined company would become the third-largest automaker in the world by sales, trailing only Toyota and Volkswagen, as the Associated Press reported.
The merger talks, which began toward the end of 2024, come as both companies face increasing competition from Chinese electric vehicle manufacturers. Mitsubishi (a Nissan alliance member) is also participating in the talks.
By joining forces, Honda and Nissan hope to cut costs, boost production, and strengthen their position in the growing EV market.
"We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base," Nissan CEO Makoto Uchida said.
For consumers, this merger could mean a wider selection of affordable, technologically advanced vehicles. By pooling resources, Honda and Nissan hope to accelerate the development of EVs and hybrid models, making them more accessible. This could also lead to lower prices if the companies share manufacturing facilities and research costs.
EVs are growing in popularity not just for their cost savings but also for their health benefits, as one study from the University of California found that "for every additional 20 [zero-pollution vehicles] per 1,000 people, there was a 3.2% drop in the rate of asthma-related emergency visits."
Additionally, the merger could help the companies navigate environmental regulations, ensuring that future models meet sustainability standards, especially since the companies share a commitment to work toward reducing harmful carbon pollution.
This move aligns with a broader trend of major corporations' investments in sustainability. Other automakers, such as Volkswagen and Ford, have already ramped up their EV production and committed to more sustainable processes — though there has also been scaling back of initial plans. (Consumers looking to support environmentally responsible brands can check out TCD's guide on eco-friendly initiatives.)
Responses to the potential merger have been mixed. Former Nissan CEO Carlos Ghosn labeled the potential merger as "a desperate move," expressing skepticism about the "industrial logic" and potential synergies between the two automakers, as Carscoops detailed.
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Absolutely 👍 However, Honda CEO Toshihiro Mibe presented a more optimistic point of view,
"We have come to the realization that in order for both parties to be leaders in this mobility transformation, it is necessary to make a more bold change than a collaboration in specific areas," Mibe said, per the Associatied Press.
In Reddit forums, such as r/regularcarreviews, users have also expressed a range of opinions regarding the merger's potential impact on vehicle quality and brand identity.
"Honda, Nissan and Mitsubishi will retain their individual personalities. So don't expect radically different exterior designs, interiors, driving dynamics, etc., than what they have currently," one person speculated.
"I think they both have things they do well separately but could benefit them both using them," another said.
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