Honda and Nissan have reportedly held exploratory talks about a potential merger to better compete against electric vehicle (EV) manufacturers, particularly in China.
In March, the companies agreed to explore collaboration in the EV sector, and their discussions have focused on leveraging each other’s strengths. While the companies have not confirmed a merger, they acknowledged ongoing talks, with an official update expected soon.
The potential merger could face political challenges in Japan due to possible job cuts and Nissan’s existing alliance with Renault.
Honda and Nissan, struggling to maintain market share in China, are attempting to strengthen their positions as competition intensifies, particularly from EV maker BYD.
Analysts question whether a merger would make the companies more competitive globally.
Source: BBC