In December 2024, reports emerged that two of Japan's automotive juggernauts are looking to form a merger akin to the automotive equivalent of a 'dream team.' On Dec. 23, the leaders of Japanese automakers Nissan (NSANY) and Honda (HMC) announced that they intend to merge under a holding company in an effort to stay competitive against its rivals in a world shifting towards electric vehicle adoption.

The mooted Honda Nissan merger and the fallout from leadership change at Stellantis suggests the auto industry must brace for turmoil, where size is a survival necessity.

The problem is there is no likely outcome that would leave both companies and their employees better off than they are today.

Nissan has reportedly been asked to acquire the shares held by its Renault alliance partner – worth $AU5.8 billion – as merger discussions with Honda continue. Honda has reportedly asked Nissan to buy out the shares held by France’s Renault ahead of a likely merger between the two Japanese brands.

The Honda-Nissan merger would be a historic move if it happens, but French automaker Renault has already put an unexpected bump in the road.

There's still a lot of time before any aspect of this merger becomes a reality. Both Honda and Nissan are still feeling out the viability of this merger- a decision which may be r

Honda is eager to ensure there's no foreign influence on its merger with Nissan, especially since Taiwan's Foxconn has been eyeing the ailing brand

Honda reportedly wants Nissan to buy out the share Renault has in it, before the two Japanese brands shack up together in 2026.