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.

As Honda and Nissan negotiate the terms of a possible merger, we take a speculative look at what new vehicles could spawn from the unprecedented collaboration.

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

Discussions are currently underway for the merger of Honda and Nissan. Working together, Honda-Nissan will have improved cost efficiencies and production capacity. They will be in a better position to tackle the threat from China-based EV manufacturers. If things go smoothly, the Honda-Nissan merger could be completed by 2026.

Nissan Motor Corporation is a Japanese automaker founded in 1933 and the parent automaker of Infiniti and formerly Datsun. Nissan produces a wide variety of mass-market vehicles, including popular SUVs like the Rogue,

Honda and Nissan have signed a memorandum of understanding (MoU) to start discussions that could pave the way for a merger of the two companies.

Nissan Motor Co. will stop making its AD compact van in November to pare back excess production as Honda Motor Co. prepares to fold the flailing carmaker into its business.