Nissan and Honda Plan Merger by 2025

Nissan and Honda are in talks for a potential merger, with plans to formalize the deal by June 2025, as both companies face intense competition, particularly from Chinese electric vehicle manufacturers. Carlos Ghosn, the former CEO of Nissan, characterized the merger as a 'desperate move' driven by Nissan's financial struggles, including a drastic 99% drop in quarterly operating profit. Ghosn criticized the lack of synergies between the two automakers, noting that they operate in overlapping markets with similar product offerings, thus questioning the merger's pragmatic value. He suggested that Honda might take control of Nissan in the event of a merger, as Nissan's current management appears ineffective. Meanwhile, Nissan's plans to cut 20% of production and lay off thousands of employees highlight its precarious situation. Both companies aim to strengthen their positions in the evolving automotive landscape, but their collaboration's industrial logic remains under scrutiny.