Nissan and Honda hold merger talks

Nissan and Honda are in early talks about a potential merger to create a $52bn Japanese carmaker. The move is aimed at improving competitiveness in the face of growing Chinese EV manufacturers and sluggish consumer demand for EVs. Concerns about job cuts and political backlash in Japan have been raised. The combined company would be the third-largest carmaker globally, behind Toyota and Volkswagen. Nissan has faced financial difficulties and job losses, while Honda has a market value of $44bn. The merger talks come amid uncertainty about the impact of Donald Trump’s return as US president. Both companies have announced collaboration on EV development and software. The potential merger could have implications for Mitsubishi Motors, in which Nissan has a stake. Renault may consider selling a portion of its shares in Nissan to Honda as part of a restructuring of its alliance.

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