What’s Got the Two Major Automakers Talking?
The automotive world has been changing fast, and major manufacturers like Nissan and Honda are determined to keep up. Now, that means they may be joining forces to compete.
There are currently two forces at play in the automotive world. First, we are undergoing a historic shift toward electrification and away from gas-burning vehicles. Second, China is quickly carving out a position as a global leader in vehicle manufacturing.
The Shift Toward Electrification
People across the globe have been adopting EV technology at record rates, and major brands have been electrifying their most popular vehicles. Examples include the hydrogen fuel-cell-powered Honda CR-V e:FCEV, Hyundai Kona EV, Ford F-150 Lightning, and others.
As the technology continues to become more popular, conventional automakers often struggle to keep up with everything required to make the switch. For Nissan and Honda, the solution may be to join forces and share technological advancements.
China’s Growing Role as EV Exporter
Chinese automakers like BYD and Nio are popular both within the country’s borders and abroad. That change could be bad news for Honda and Nissan, which once considered China a significant market.
The problem is that Chinese automakers can make cars more affordable. They have also created unique technological advancements that make it easier for them to win over local consumers.
BYD and Nio are experiencing such success at home, so they’re shifting attention to markets abroad. Recently, Chinese automakers have overtaken Japan as the most prominent auto exporter.
Large Mergers May Become the New Normal
Nissan has been faring worse than Honda in keeping up with shifting global trends and the drive toward electrification. In November 2024, the company announced it would cut 9,000 jobs. Honda has also seen its global profits slide.
Experts in the industry believe that more large-scale mergers will occur over the coming years as automakers continue to respond to growing challenges from China and the need to switch production facilities to accommodate electric vehicles.
Sam Abuelsamid is a Detroit-based industry analyst who believes that even with significant mergers happening, there will be casualties in the trade war with China. He states that some well-established brands may not be around in five to ten years, while current upstarts may take a more significant portion of the market share.
Honda and Nissan have been slower than most automakers in adjusting to the global transition to electric vehicles. Honda is seeing some success with hybrids, but neither company has made significant strides toward electrification.
What All This Means for American Drivers
The Honda-Nissan merger deal should be concluded by mid-2026. If it goes through, there are some questions as to which models they will retain. Popular vehicles like the Honda CR-V will probably continue to exist, but Nissan’s luxury brand, Infiniti, may get the axe.
Newer models should be added to the automakers’ roster soon, as well. However, neither Honda nor Nissan has given any indication that they have specific plans of releasing new EVs in the immediate future.
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