On Tuesday in Las Vegas, during a roundtable discussion with select media, Honda executives offered some more insight into the merger, including how combining resources and factories could help the companies stay competitive in the increasingly costly fight with China.

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

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.

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.

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.

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.

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.

Here's a quick look at what a combined Honda and Nissan would mean for the companies, and for the auto industry.