What was unthinkable a decade ago might now become reality: Honda and Nissan, Japan’s second- and third-biggest carmakers, are holding talks over a possible $52 billion merger.
It’s a bid to stay competitive in a rapidly-changing industry in which both companies have been struggling due to the rise of advanced Chinese competition and slowing demand for electric vehicles.
The FT says a merger between the two would make them the world’s third-largest carmaker behind Toyota and Volkswagen based on last year’s sales.
Given Nissan’s manufacturing capacity in the US, the merged company might also be able to better weather the impacts of any tariffs Trump imposes on Japanese car imports.
