Nissan and Honda Merger Talks: What to Know About the Deal

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Automotive ข่าว

Merger,Nissan,Honda

Nissan and Honda are exploring a merger to better compete in a rapidly changing automotive market dominated by electrification and Chinese competition.

The two major Japanese automakers are discussing a merger. Nissan and Honda are in talks for a merger with the goal to complete it by 2026. It's yet another sign of the big changes hitting the auto sector.The two major Japanese companies are hoping that joining hands will allow them to better compete in an automotive world that's facing seismic changes.

Two massive forces are at play currently: The global auto industry is in the midst of a historic shift to electrification at the same time that the world's largest automakers are facing a formidable competitor in China.The emergence of Chinese automakers such as BYD and Nio has eroded the market share of global automakers such as Honda, Nissan and Volkswagen in China — a country they once counted as a critical market. The Chinese automakers can not only make cars more cheaply, they have also won over Chinese consumers with their electric vehicles and their nifty software. These Chinese upstarts are no longer content to become dominant at home. They are now focused on markets abroad, including key ones for Japanese automakers such as Europe, where Chinese automakers are Both Nissan and Honda have a lot of overlap in the U.S. market in SUVs and in sedans such as the pictured Honda Accord.Nissan in particular has struggled recently, especially in the key American market, where sales have weakened. Last month, for example, the company said it was Sam Abuelsamid, an auto industry analyst based in Detroit, says he expects more global deals like Nissan and Honda in the next few years as automakers respond to the threat from China — and he predicts there will be casualties.'Some brands that have been around for a long time may well not be part of the landscape .

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