In December 2024, reports emerged that two of Japan's automotive juggernauts are looking to form a merger akin to the automotive equivalent of a 'dream team.' On Dec. 23, the leaders of Japanese automakers Nissan (NSANY) and Honda (HMC) announced that they intend to merge under a holding company in an effort to stay competitive against its rivals in a world shifting towards electric vehicle adoption.

As Honda and Nissan negotiate the terms of a possible merger, we take a speculative look at what new vehicles could spawn from the unprecedented collaboration.

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

Nissan Motor Corporation is a Japanese automaker founded in 1933 and the parent automaker of Infiniti and formerly Datsun. Nissan produces a wide variety of mass-market vehicles, including popular SUVs like the Rogue,

Honda has reportedly asked Nissan to consider acquiring Renault’s 35.7% stake in the company (Nissan). Honda and Nissan are engaging in merger talks and the move would be part of avoiding a scenario in which a third party owned a significant stake in Nissan that would complicate merger negotiations.

To hit this target, Nissan will need to rake in approximately 400 billion yen in fiscal 2026—roughly $2.6 billion at current exchange rates. That’s a tall order, especially considering Nissan’s operating profits plummeted by 90.

It seems like Japanese automakers are fast falling behind the EV movement, with Tesla and Volkswagen taking the lead. However, that could all change by 2025, says CNN, as Honda and Nissan

The direct-to-consumer sales model may witness some dealer resistance since Honda relies on a vast dealer network. Scout is facing a similar backlash from Volkswagen dealers. And the Afeela 1 will also be manufactured at Honda’s Ohio production hub, where most popular models, like the Accord and CR-V are made.

Nissan Motor Co. will stop making its AD compact van in November to pare back excess production as Honda Motor Co. prepares to fold the flailing carmaker into its business.