The problem is there is no likely outcome that would leave both companies and their employees better off than they are today.

While Honda does have the Prologue, that vehicle was part of a $5 billion joint venture with GM that only lasted through the development of two vehicles. The Prologue has been a surprise EV hit, selling over 33,000 in 2024 and outselling the larger gas-powered Honda Passport.

Honda and Nissan’s merger risks failure due to cultural clashes and misalignment. Find out why HMC and NSANY stocks are uncertain investments.

Honda has announced an agreement to merge with Nissan in a deal worth a reported $54 billion. Mitsubishi, which has long been allied with Nissan, will decide by the end of January 2025 whether to join the venture, potentially increasing the total merger value to $58 billion.

Good morning! It’s Thursday, January 9, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

We read your reactions on our coverage of the potential Honda-Nissan merger, and chuckled at every single “Honda Civic Type Z,” and “Nissan CR-XTrail” comment. These have all been funny, outrageous, and have started some interesting conversations at the office.

Nissan and Honda have collaborated on various projects over the years, mainly to share development costs and increase economies of scale in low-volume vehicle segments, including mini-vehicles and commercial vehicles. More recently they extended their collaboration to include the development of hybrid and autonomous driving technologies.

Plus, auto suppliers are scrambling to move production to dodge tariffs and China's exports expected to drop for 2025.

Honda’s largest crossover is the Pilot, which spans 199.9 inches (5,077 mm) long and has seating for up to eight people. The Armada is considerably larger as it measures 209.6 inches (5,324 mm) long. It’s also more burly thanks to a twin-turbo 3.5-liter V6 developing 425 hp (317 kW / 431 PS) and 516 lb-ft (699 Nm) of torque.

Honda and Nissan have strong presences in major markets like North America, Europe, and Japan. However, they are struggling in China. “Both Honda and Nissan have significant overcapacity issues in China, which requires optimization before any merger talks, James Hong, an analyst at Macquarie Securities Korea Ltd., said.