On Tuesday in Las Vegas, during a roundtable discussion with select media, Honda executives offered some more insight into the merger, including how combining resources and factories could help the companies stay competitive in the increasingly costly fight with China.

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

With plummeting sales and competition from Chinese EV brands, Nissan may not make it past 2025 without the help of an anchor investor.

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.

Good morning! It’s Thursday, January 9, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

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

Once they find a common direction, Honda and Nissan will draw up a definitive agreement to merge, including a plan to transfer shares, by June 2025. If that goes through, they will seek to get plans approved by April 2026, with the merger happening later that year.

Honda’s largest crossover is the Pilot, which spans 199.9 inches (5,077 mm) long and has seating for up to eight people. The Armada is considerably larger as it measures 209.6 inches (5,324 mm) long. It’s also more burly thanks to a twin-turbo 3.5-liter V6 developing 425 hp (317 kW / 431 PS) and 516 lb-ft (699 Nm) of torque.