Challenges in the Automotive Industry

The automotive industry is facing significant challenges, particularly highlighted in the discussions surrounding potential mergers between Nissan and Honda. These talks are seen as a desperate move rather than a pragmatic solution, given the lack of complementarity between the two companies and their overlapping markets. Nissan's performance has been struggling, with issues like cash shortages and lack of investment leading to a panic mode within the organization. This situation is exacerbated by external pressures from Japan's Ministry of Economy, Trade and Industry (METI), which is pushing for a merger to address short-term problems without a clear long-term strategy.