Honda and Nissan in merger talks
The companies are currently Japan's second and third-biggest automakers, respectively


What happened
Honda and Nissan said Wednesday they are exploring merging their companies, deepening a collaboration between Japan's No. 2 and No. 3 automakers that started in March. Both companies are losing ground in China, the world's largest auto market, and struggling to keep up with Tesla and China's BYD in the global race to produce affordable electric vehicles.
Who said what
In a joint statement, Honda and Nissan said they were "considering various possibilities for future collaboration, but no decisions have been made." A combined Honda-Nissan would be the world's third-largest automaker by production, sales and market capitalization, after Toyota and Volkswagen.
A merger would allow Honda and Nissan to "seek synergies in purchasing and technology development, but it would also present challenges for two companies with different cultures and partly overlapping vehicle lineups," The Wall Street Journal said. Honda "has long pursued a go-it-alone approach," The New York Times said, but the high investment costs in pivoting to battery-powered vehicles has "led it to seek partnerships."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
Nissan and Honda were "expected to sign a memorandum of understanding within the next week to formally begin discussions of partnership-broadening steps," the Times said, "including the details of a potential merger."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Allies at War: a 'revelatory' account of the Second World War
The Week Recommends Tim Bouverie's 'old-fashioned diplomatic history' explores the often fraught relationship between world powers
-
Ukraine-US minerals deal: is Trump turning away from Putin?
Today's Big Question US shows 'exasperation' with Russia and signs agreement with Ukraine in what could be a significant shift in the search for peace
-
The Friend: a 'graceful' but flawed dog movie
The Week Recommends Naomi Watts stars in 'intelligent' adaptation of Sigrid Nunez's book about a 'problematic pooch'
-
Cultural copying: Western fast fashion is co-opting South Asian culture
Under the radar Reformation's new collection resembles traditional South Asian garments
-
Shakespeare not an absent spouse, study proposes
speed read A letter fragment suggests that the Shakespeares lived together all along, says scholar Matthew Steggle
-
The rise and rise of VTubers
Under The Radar This anime-inspired internet subculture is going global
-
Exploring the three great gardens of Japan
The Week Recommends Beautiful gardens are 'the stuff of Japanese landscape legends'
-
6 stellar noctourism adventures
The Week Recommends After the sun sets, the fun begins
-
Why Japanese residents can't watch their country's Oscar-nominated #MeToo documentary
THE EXPLAINER Shiori Ito became one of the faces of Japan's #MeToo movement
-
New Mexico to investigate death of Gene Hackman, wife
speed read The Oscar-winning actor and his wife Betsy Arakawa were found dead in their home with no signs of foul play
-
Giant schnauzer wins top prize at Westminster show
Speed Read Monty won best in show at the 149th Westminster Kennel Club dog show