Carmakers face two major challenges: profitability in a shrinking combustion engine market and navigating the transition to electric vehicles. A potential merger between Honda and Nissan, which could create a $220 billion Japanese giant, might help with the former. However, traditional strategies are insufficient for developing a new business model for EVs.
While a combined Honda-Nissan entity could benefit from economies of scale and cost savings, it's unclear how they would compete with EV leaders like Tesla and BYD. Instead of focusing on building EV manufacturing scale, traditional carmakers should explore alternative paths
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