Honda-Nissan Merger: A Traditional Solution for a Disruptive Future?

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Automotive Industry Nyheter

Automotive Industry,Electric Vehicles,Merger

This article explores the potential benefits and challenges of a proposed merger between Honda and Nissan, examining how it might address the car industry's dual pressures of declining combustion engine sales and the rapid rise of electric vehicles.

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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