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Nissan and Honda in Merger Talks

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MERGE,AUTOMOTIVE,ELECTRIC VEHICLES

Nissan and Honda are exploring a possible merger to create a $52 billion Japanese automotive giant. The talks aim to bolster their competitiveness against rising Chinese electric vehicle manufacturers and slow EV demand. Concerns exist about potential job losses and political backlash in Japan. Both companies are facing financial challenges with Nissan undergoing a turnaround plan and Honda seeking to navigate uncertainties in the wake of Donald Trump's return as US president.

Nissan and Honda are in exploratory talks about a merger of the two carmakers that would create a $52bn Japanese behemoth, according to people briefed on the matter. The two companies are studying a way to combine that would help them better compete at a time when traditional carmakers are grappling with fast-growing Chinese electric-vehicle manufacturers, and slower-than-expected consumer demand for EVs.

” Honda issued a similar statement, saying it and Nissan were “exploring various possibilities for future collaboration”. Renault declined to comment. In August, Honda and Nissan said they would roll out an EV by the end of the decade, as the two companies agreed to jointly develop software.

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