Could a Honda-Nissan Merger Save Japan's Auto Industry?

The news sent shockwaves across the auto industry, Wall Street and even the consumer space: Struggling Japanese automaker Nissan may merge with considerably less struggling Japanese automaker Honda. If you own, have owned or are a fan of either brand, this may come as a total surprise to you, and that's understandable. But I'm about to fill you in on why this might be happening and what it means for the entire car business as a whole.

That's the lead item on this midweek edition of Critical Materials, our morning news roundup. Make sure you subscribe to our newsletter in the link below and check out the Plugged-In Podcast from InsideEVs, with new episodes dropping on audio platforms and YouTube on Fridays. Also on tap today: some good news on the EV charging front, even with President Donald Trump coming in with a vendetta against electric funding. Let's dig in. 30%: A Honda-Nissan Merger Could Save Japan Inc. From Disaster, Or Fix Nothing Photo by: Nissan Honda Nissan Mitsubishi Partnership I've actually been inundated with text messages about this news from my normal friends and family members—you know, people who don't fastidiously read automotive trade publications, Bloomberg and the Financial Times multiple times a day. 'Wait, Nissan and Honda?' they ask. 'What's wrong with Nissan? Or Honda?' That's because most people don't understand the rough shape that Nissan, specifically, is in these days. It's just kind of one of those normal, everyday car brands that people buy when they don't want to think that much about buying a car, or its specs, or how it looks—they need something new and they need a good deal. But that's the problem. That's what that brand has become in the U.S., its biggest and most important global market. What people don't realize is that Nissan's sales and profits here and worldwide have been tanking for years now. Dealer profits in the U.S. are down 70% year-over-year

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