It hasn't been a month since two Japanese automakers, Honda and Nissan, officially announced their merger plans, but it appears that it's already facing a major hurdle. According to reports coming from Japan,

Honda executives recently shared insights into their rationale for the proposed merger with Nissan.During a media roundtable at CES 2025 in Las Vegas Honda stressed the urgency to address mounting competition from Chinese automakers,

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

The mooted Honda Nissan merger and the fallout from leadership change at Stellantis suggests the auto industry must brace for turmoil, where size is a survival necessity.

Honda and Nissan are weighing the creation of a joint holding company “amid the dramatic changes in the environment surrounding both companies and the automotive industry,” Honda said. Among the reasons for exploring a merger: Critically examining plants and jobs.

Honda’s chief executive said the move wasn’t a rescue of troubled Nissan.

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

Japanese automakers Nissan and Honda are expected to announce plans on a merger that would catapult them to a top position in an industry in the midst of tectonic shifts as it transitions away from reliance on fossil fuels.

Honda is eager to ensure there's no foreign influence on its merger with Nissan, especially since Taiwan's Foxconn has been eyeing the ailing brand

Honda reportedly wants Nissan to buy out the share Renault has in it, before the two Japanese brands shack up together in 2026.