Nissan and Honda Merger Talks

Nissan and Honda are discussing a potential merger that could position them as the world's third largest automaker. This move is partly driven by concerns over Nissan's long-term viability and the increasing competition from companies like Toyota and Tesla in the electric vehicle (EV) sector. The accelerated talks were influenced by Foxconn's interest in acquiring a stake in Nissan, highlighting the Japanese government's worry about foreign investment in key domestic companies. A combined entity would strengthen Nissan's portfolio, particularly in hybrid vehicles, an area where it has been lacking in the U.S. market.