Nissan, in particular, is struggling, and an insider recently warned the automaker only has 12–14 months to survive
Two of Japan's biggest automakers could merge to form a national champion to fend off competition in the electric vehicle segment, according to a report from The Japanese news daily reported on Tuesday that Honda and Nissan are close to starting merger talks and that a successful merger could eventually add Mitsubishi as a partner in aThe automakers' combined sales in 2023 totaled more than eight million. Such a figure for the merged company would make it the third-biggest automaker by sales volume, behind Toyota and Volkswagen Group, which sold 11.2 million and 9.2 million vehicles in 2023, respectively.
Japanese automakers are consolidating in an effort to reduce costs but also catch up in the EV race after years of promoting hydrogen fuel cells as an alternative. Toyota, Mazda, and Subaru also announced in May plans to collaborate The moves are aimed at fending off competition from international rivals, particularly from China, which last year overtook Japan to become theNissan, in particular, is struggling. The automaker announced plans in October to lay off approximately 9,000 employees, representing 6.7% of its global workforce, and to cut production capacity by 20% due to declining sales, primarily in the U.S. and China.
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