Honda and Nissan are in talks to merge Japan’s second-largest and third-largest carmakers, aiming to create a global giant with the scale to compete against Tesla and Chinese rivals. But the history of automaker mergers is littered with smouldering wrecks. Honda and Nissan must overcome hurdles that have scuppered other combinations, from differences in corporate culture to political issues. Here are five challenges ahead. Nissan insists that “no decisions have been made”.
Typically, a carmaker’s best engineers get to work on its sports car as a reward. At Honda, its stars are given the Civic, a modest family sedan. This approach distinguishes Honda from competitors — and is another challenge to a meaningful tie-up with Nissan. Automakers are no strangers to joint programmes, often working together on engines or vans. But full combinations are different, requiring the melding of distinctive cultures entrenched over decades.
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