Honda and Nissan’s merger risks failure due to cultural clashes and misalignment. Find out why HMC and NSANY stocks are uncertain investments.

Honda has announced an agreement to merge with Nissan in a deal worth a reported $54 billion. Mitsubishi, which has long been allied with Nissan, will decide by the end of January 2025 whether to join the venture, potentially increasing the total merger value to $58 billion.

With their merger seeming increasingly inevitable, Honda and Nissan are considering more than just the benefits of cost savings on future electric products. With Trump returning to office and some import manufacturers feeling pressure to adjust their production strategies,

A Honda exec has suggested the company is eyeing its own version of the Nissan Armada. The SUV would dwarf the Pilot and compete with Tahoe, Sequoia, and other big players. Future plans suggest Honda and Nissan may co-develop full-size SUVs for shared markets.

A Honda executive suggested the two companies could co-develop future full-size vehicles or that Honda could utilize existing full-size Nissans for its lineup.