The automotive industry is consolidating, and electric vehicles are partly to blame. This trend likely started a few years ago when Fiat Chrysler and France's PSA Group merged into Stellantis. Even before that, the late CEO of Fiat Chrysler warned that consolidation was the only way car companies could survive the immense technological challenges ahead—electrification, autonomous vehicles, and so on—without spending themselves into oblivion.
But the recent merger plans between Honda and Nissan are a significant development. Make no mistake: this is a big deal and says a lot about where the car business is going next. \This is the focus of today's Critical Materials, our morning roundup of technology and 'mobility industry' news. There's also news about smaller and more affordable vehicles making a comeback and a theory about Tesla CEO's latest moves in Washington, D.C. Let's dig in. \30%: Details Emerge In Honda-Nissan-Probably Eventually Mitsubishi Merger \A mere week after a report in Nikkei Asia indicated Honda and Nissan were considering merging into one company, talks between the two automakers officially kicked off in Japan today. 'Nissan Motor Co., Ltd. ('Nissan') and Honda Motor Co., Ltd. ('Honda') have signed a memorandum of understanding (MOU) to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company,' the two said in a joint news release. That was certainly quick. But it's probably because Nissan is running out of time. We've covered this company's many problems in the past so I won't recap them in their entirety here, but just recently, its own executives said it had about 12 to 14 months to survive before it would need some kind of restructurin
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