Nissan News & Analysis

A tie-up with Honda could help Nissan solve a big problem, car dealers said: It doesn’t have any hybrids. A merger could fix that.

A merger of Nissan and Honda would create the world’s third-largest automaker. Honda’s top seller is the CR-V, and Nissan’s is the Rogue.

Together, Honda and Nissan would be a $54 billion company producing of 7.4 million vehicles a year.

Nissan’s letter echoes similar moves by more than a dozen companies, from rival Toyota Motor Corp. to Walmart Inc. and Harley-Davidson Inc.

Shares of Nissan Motor Co. closed 23.7% higher on Wednesday, following reports that the Japanese automaker was planning merger discussions with Honda Motor Co,

Speed, not scale, is what they require

Combining forces would allow the companies to increase their U.S. manufacturing ahead of possible tariffs on car imports.

HMC and NSANY are in talks to form a holding company and are likely to sign a memorandum of understanding soon, per Nikkei.

Nissan and Honda are understood to be exploring a blockbuster merger as the two rival companies seek to stay competitive on the road to full electrification.

Foxconn, which has been investing heavily in factories to build electric vehicles, would be interested in the entirety of the maker of Pathfinders, Sentra sedans and GTR supercars.