Honda and Nissan Reportedly Consider Merger to Combat Chinese Automakers

Japanese carmakers Honda and Nissan are reportedly considering a merger — a sign that major global manufacturers are joining forces to compete against their mighty Chinese competitors as the auto world goes electric. The two companies — which, if merged, would become the world's third-largest auto manufacturer by sale units — could meet as soon as Monday to move forward on the talks.

Together, Honda and Nissan would bring 'collective muscle and size and scale to meet the challenges of the Chinese automakers like BYD, and Tesla, the other big electric player in the marketplace,' said Peter Frise, a professor of engineering at the University of Windsor. They would also have a stronger edge against traditional automakers who are developing their own EV programs, including their Japanese rival Toyota, which is far larger than the companies sometimes referred to as its little brothers. Their North American plants are also facing the threat of U.S. president-elect Donald Trump's promise to slash consumer incentives for EVs, a $7,500 US tax credit introduced by the Biden administration to boost sales. China's auto sector has seen an explosion of exports in the last several years, with its electric-vehicle sector aided by generous government subsidies that help to keep prices low. This year, for the first time ever, hybrid and electric vehicles accounted for more than half of all cars sold in China, the world's largest auto market

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