Honda and Nissan are reportedly looking at the possibility of merging, sparking speculation about what the potential move could mean – but experts say the rumors of a partnership are not a surprise. News of the merger talks, which was first reported by the Nikkei newspaper on Tuesday, comes as both Japanese auto giants struggle to compete with the largest global electric vehicle makers, including Tesla and Chinese automaker BYD.
Honda and Nissan are the second- and third-largest auto manufacturers in Japan, respectively, with Toyota leading them both. The respective market capitalizations of Honda and Nissan are roughly 5.95 trillion yen and 1.17 trillion yen . "A company like Honda might not be able to do that on their own, but at the same time, Honda has some pretty compelling products, so I feel like they both bring something important to the table," Moody said.
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