Honda has announced an agreement to merge with Nissan in a deal worth a reported $54 billion. Mitsubishi, which has long been allied with Nissan, will decide by the end of January 2025 whether to join the venture, potentially increasing the total merger value to $58 billion.

Honda and Nissan’s merger risks failure due to cultural clashes and misalignment. Find out why HMC and NSANY stocks are uncertain investments.

Nissan and Honda have collaborated on various projects over the years, mainly to share development costs and increase economies of scale in low-volume vehicle segments, including mini-vehicles and commercial vehicles. More recently they extended their collaboration to include the development of hybrid and autonomous driving technologies.

We read your reactions on our coverage of the potential Honda-Nissan merger, and chuckled at every single “Honda Civic Type Z,” and “Nissan CR-XTrail” comment. These have all been funny, outrageous, and have started some interesting conversations at the office.

With their merger seeming increasingly inevitable, Honda and Nissan are considering more than just the benefits of cost savings on future electric products. With Trump returning to office and some import manufacturers feeling pressure to adjust their production strategies,