The information despatched shockwaves throughout the auto trade, Wall Road and even the buyer house: Struggling Japanese automaker Nissan could merge with significantly much less struggling Japanese automaker Honda. Should you personal, have owned or are a fan of both model, this may increasingly come as a complete shock to you, and that is comprehensible. However I am about to fill you in on why this could be occurring and what it means for the complete automobile enterprise as a complete.
That is the lead merchandise on this midweek version of Crucial Supplies, our morning information roundup. Be sure you subscribe to our e-newsletter within the hyperlink under and take a look at the Plugged-In Podcast from InsideEVs, with new episodes dropping on audio platforms and YouTube on Fridays.
Additionally on faucet right now: some excellent news on the EV charging entrance, even with President Donald Trump coming in with a vendetta in opposition to electrical funding. Let’s dig in.
30%: A Honda-Nissan Merger May Save Japan Inc. From Catastrophe, Or Repair Nothing

Photograph by: Nissan
Honda Nissan Mitsubishi Partnership
I’ve truly been inundated with textual content messages about this information from my regular family and friends members—you understand, individuals who do not fastidiously learn automotive commerce publications, Bloomberg and the Monetary Occasions a number of occasions a day. “Wait, Nissan and Honda?” they ask. “What’s mistaken with Nissan? Or Honda?”
That is as a result of most individuals do not perceive the tough form that Nissan, particularly, is in as of late. It is simply form of a kind of regular, on a regular basis automobile manufacturers that folks purchase after they do not need to suppose that a lot about shopping for a automobile, or its specs, or the way it seems—they want one thing new they usually want deal. However that is the issue. That is what that model has develop into within the U.S., its greatest and most essential international market.
What folks do not understand is that Nissan’s gross sales and earnings right here and worldwide have been tanking for years now. Seller earnings within the U.S. are down 70% year-over-year. Working revenue plunged by 99% in its first monetary quarter. Gross sales have been sliding even worse in China, the place homegrown automobile manufacturers have been displacing the Western and different Asian ones at a speedy tempo for years now.
The automobiles could provide first rate offers, however they don’t seem to be aggressive by way of know-how. Nissan sells no hybrid automobiles within the U.S. at a time after they’re having an enormous second. (The alternative is true for Toyota, for instance, which is having a terrific yr due to hybrids.) And regardless of being an early mover within the EV house, Nissan solely sells the outdated Leaf and the so-so Ariya, whereas it is delayed a slew of different fashions; it would not have the momentum that, say, Basic Motors or Hyundai have within the electrical realm.
You’ll be able to blame this on lots of issues, however one of many greatest culprits is the fallout from two crises: the fall of its former megaboss Carlos Ghosn and the expertise drain that occurred afterward, adopted by the yearslong renegotiation of Nissan’s often-awkward alliance with Renault. All that chaos did not go away Nissan very ready for the longer term, and its outdated know-how and lineup of automobiles is catching as much as it now.
“The introduced merger talks between Nissan and Honda should not shocking, given the latest turbulence impacting legacy automakers globally,” stated Michael Brisson, auto economist at Moody’s Analytics, in an e-mail to InsideEVs. “Nissan’s monetary struggles are in no small half a consequence of the surging competitors from Chinese language automakers. Their 2023 retail gross sales in China had been roughly half of their 2019 figures, a yr when China accounted for one in three of Nissan’s international gross sales.”
“These Nissan-Honda merger discussions, coupled with the latest challenges at Stellantis and manufacturing cutbacks in Europe, all level to a single, stark actuality: a brand new drive has emerged within the automotive sector, and legacy automakers must be aware of the aggressive menace,” Brisson stated.
So, sure. Issues are worse at Nissan than your common individual in all probability is aware of. Now, the place does Honda enter into this?
Like the remainder of Japan Inc., Honda is behind on absolutely electrical automobiles (which is an extended story, however here is abstract of why.) However Honda’s automobiles nonetheless promote nicely. It makes hybrids folks like. It is worthwhile. And Honda actually appears to have gotten a wake-up name from the rise of China’s automakers, so whereas it is late to the sport, it is orchestrating a giant EV push that we’ll see the fruits of within the coming years.
To get forward of the EV powerhouse that’s China, these automakers want cash, experience and scale. These are large investments. They require tons of capital to develop batteries and software program, and personal the provision chains to develop each. This is not a recreation of who makes one of the best internal-combustion engines anymore. It is a completely totally different recreation. And Japan Inc. can both catch up or die, in all probability by the hands of China’s BYD and others.
In response, we have seen Japan’s auto trade coalesce round two factions: one led by Toyota that features Mazda, Subaru and Daihatsu, and one other with Honda and Nissan and doubtless Mitsubishi. Honda and Nissan introduced a technical partnership earlier this yr to co-develop EVs and software program. Now, it might flip right into a full-blown merger as an alternative.
Nikkei Asia first reported the information yesterday and it has been featured in numerous different retailers, so I do suppose it has legs. The speculation is the 2 would function beneath a holding firm that would additionally ultimately embrace Mitsubishi.
I additionally suppose Honda was sparked into motion—even perhaps by the Japanese authorities—over studies {that a} Chinese language automaker or different agency might purchase some or all of Nissan. In principle, that would give a kind of firms a means into the U.S. or a greater path to Europe by way of Nissan’s vendor networks. Clearly, Japan would not need that.
Now the query is, will it truly occur? This is CNBC with some evaluation I like:
The merger report comes at a time when many vehicle giants are struggling to deal with elevated international competitors from greater electrical automobile (EV), makers similar to Tesla and China’s BYD.
A mega-merger, nevertheless, is predicted to face a number of obstacles. Analysts have expressed issues concerning the probability of political scrutiny in Japan, given the potential for job cuts if a deal pushes by way of, whereas the unwinding of Nissan’s alliance with French automobile producer Renault is thought to be pivotal to the method.
“This tie-up shouldn’t be fully surprising as a result of clearly they introduced their partnership earlier this yr,” Lucinda Guthrie, govt editor at Mergermarket, instructed CNBC’s “Road Indicators Europe” on Wednesday.
“A number of the studies I’ve seen declare that this happened because of Foxconn making an method to Nissan. Now, with this explicit transaction, I query whether or not it’s going to be a hardcore merger or whether or not it’s going to be extra of a partnership,” she added.
Make no mistake: Honda is the savior right here. Or can be, if this goes by way of. One analyst instructed CNBC that the deal “would seemingly have a unfavorable influence for Honda, however a constructive one for Nissan and Mitsubishi.”
However no matter’s going to occur will seemingly take years. The renegotiation of Nissan’s situationship with Renault actually did, and do not forget that automaker is part-owned by the French authorities. And here is the factor: if it does work, these firms have extra capital to play with, but in addition a much bigger group, very totally different inner cultures and challenges round which model needs to be doing what.
If this can be a survival play for both firm—however particularly Nissan—success is much from assured.
60%: U.S. EV Charging Investments To Proceed, Even Underneath Trump

Photograph by: Electrify America
Electrify America EV Chargers
However it’s not all doom and gloom within the EV house. Everybody who watches it intently has been scared of Trump’s threats to axe the EV tax credit, which might nearly actually dampen gross sales and derail the electrical transition the Biden administration was pushing so laborious for. But one factor that would damage EV development much more is that if funding for public quick chargers had been to dry up as nicely.
Automotive Information studies right now that fortunately, that is not very seemingly. Why? As a result of a lot of that cash has already been doled out to states, which then distribute it to varied firms that then construct the chargers:
“It might take nearly an act of God for Trump or Congress to overturn” the Nationwide Electrical Car Infrastructure program, stated Loren McDonald, chief analyst at Paren, which lately acquired McDonald’s EV Adoption agency.
That’s as a result of a lot of the $5 billion that underpins the initiative has already been doled out to the states. The rest was preapproved. Policymakers designed the five-year program, which began in 2021, to assist states create a community of public charging stations in 50-mile intervals alongside interstates.
Eleven states have opened greater than 30 charging websites with greater than 130 ports, backed by the federal funds, in line with Paren.
States obtain the funding and handle their very own EV infrastructure packages that adjust to federal necessities, like they do with roads and bridges.
They’ve obtained almost half — about $2.4 billion — of the EV charging program’s funds, in line with Atlas Public Coverage. The complete $5 billion was already accredited as a part of the Bipartisan Infrastructure Regulation.
“Congress actually doesn’t have to do something for this system to proceed,” stated Nick Nigro, founding father of Atlas Public Coverage. “Plenty of funding goes out the door. Plenty of building is underway, and I count on that to proceed for the foreseeable future.”
That is promising. However we’ll discover out extra in January.
90%: Extra GM Power Stations Coming, From ChargePoint

Photograph by: InsideEVs
GM Power ChargePoint EV Charging Station
This is a terrific instance. Basic Motors and ChargePoint introduced right now that they’re “are accelerating the deployment of DC quick charging throughout the U.S. by way of an incentive program,” and that may yield 500 ultra-fast charging ports open by the top of 2025.
From a information launch:
Most of the new areas will probably be geared up with ChargePoint’s Omni Port system, which permits automobiles with CCS or NACS charging ports to make use of any charger, with out the necessity to carry an adapter or dedicate a parking house to a selected connector sort. Most of the new areas will function ultra-fast charging by way of ChargePoint’s Categorical Plus platform, able to charging speeds as much as 500kW.
Get excited to see much more of these quickly.
100%: Honda-Nissan: What’s Your Learn?

Will this potential merger enable each Japanese automakers to thrive sooner or later, or is it too little, too late? And would these two even be good companions with each other? Tell us what you suppose within the feedback.
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