Nissan's share price soared nearly 24 percent in Tokyo after reports citing unnamed sources said it might merge with Honda to form the world's third-largest automaking group. Honda's share price fell as much as 3 percent. Nissan alliance member Mitsubishi Motors Corp. is also part of the talks.
What would Honda need from Nissan?Nissan has truck-based body-on-frame large SUVs such as the Armada and Infiniti QX80 that Honda doesn't have, with large towing capacities and good off-road performance, said Sam Fiorani, vice president of AutoForecast Solutions.Nissan also has years of experience building batteries and electric vehicles, and gas-electric hybird powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said.
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