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.

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

The firms want to strengthen their offerings in the face of Chinese competition in the electric vehicle sector.

Honda and Nissan have strong presences in major markets like North America, Europe, and Japan. However, they are struggling in China. “Both Honda and Nissan have significant overcapacity issues in China, which requires optimization before any merger talks, James Hong, an analyst at Macquarie Securities Korea Ltd., said.

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.

Honda may soon get its first opportunity to make a true full-size SUV and pickup truck, according to AutomotiveNews. After speaking with Honda Motor Co.'s executive vice president, Noriya Kaihara, the outlet learned that the merger between Honda and Nissan could give Honda access to Nissan's experience and knowledge in producing full-size body-on-frame trucks.