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.

Nissan needs to triple its profits by 2026 to be eligible for a merger with Honda.At a joint press conference announcing the memorandum of understanding for the merger, Honda CEO Toshihiro Mibe made it clear,

To hit this target, Nissan will need to rake in approximately 400 billion yen in fiscal 2026—roughly $2.6 billion at current exchange rates. That’s a tall order, especially considering Nissan’s operating profits plummeted by 90.

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,

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.