Honda and Nissan on the verge of a massive merger?

Nissan and Honda announced that they have signed a memorandum of understanding to begin a feasibility study on a strategic partnership in the field of vehicle electrification and intelligence.

It’s not a merger, but what it could do is share software platforms, core components related to electric vehicles, and complementary products. This is according to their company statement.

* I will tell you what is happening and why, but first I want to remind you to like this video and subscribe to the channel to keep up with the latest happenings in the automotive world.

Japan’s second- and third-largest automakers Honda Motor Co and Nissan Motor Co are discussing ways to deepen cooperation, including the possibility of a merger that would fundamentally restructure both brands and Japan’s auto industry. It’s worth noting that discussions are still in the early stages, with Nissan and Honda thinking

Honda and Nissan began working together to develop electric vehicles this year. Why are these competing brands collaborating?

Because Nissan is on the verge of collapse. Things don’t look good for Nissan, with some executives saying the company has “12 to 14 months left to survive.” Dealers are selling cars at a loss, production has slowed, and recently the company laid off thousands of jobs and sold its one-third stake in Mitsubishi. But it may all be too late.

Nissan, which faces pressure to sell more cars and create new products that customers want, has been dealt another blow with news that it will cut some Infiniti showrooms. Infiniti is Nissan’s luxury car division.

Infiniti will close most of its independent dealerships in the United States and merge the two brands into one dealership nationwide. Imagine the cost for dealers to invest in a stand-alone Infiniti dealership, millions of dollars each, plus the potential job losses for sales, service and office staff.

Acura has good market share, which could help cut costs for both brands and save or shut down Infiniti.

Now we hear Nissan and Honda begin feasibility study for strategic partnership

Partnership aims to shape electric and smart mobility future

Last year, Honda sold 3.98 million vehicles and Nissan sold 3.37 million vehicles. Their merger could make them the world’s third-largest automaker group, behind Japanese rivals Toyota Group (11.23 million cars sold last year) and Germany’s Volkswagen Group (9.23 million cars sold last year).

Nissan also holds a large stake in smaller Japanese automaker Mitsubishi Motors. Nissan and French automaker Renault have been strategic partners for more than two decades, and much of that relationship is fading, especially after the arrest and poor image of its CEO Carlos Ghosn in 2018 . We’ll never know the real story, but the results certainly hurt Nissan.

Producing better products and a merger with Honda could expand Honda’s truck lineup. We’ll follow this story as it unfolds.

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