The automakers are targeting more than 1 trillion yen ($6.4 billion) in synergies by leveraging a common platform, shared research and development (R&D), and joint procurement.But the full effect of synergies is not likely to be felt until after 2030, Honda CEO Toshihiro Mibe told a joint press conference on Monday. The companies need to build up capabilities to take on Chinese rivals by then, he said, or face being "beaten".Analysts question whether they have that much time.The biggest immediate hurdle for both may be their model line-up. Neither are particularly strong in EVs. Honda has focused more on hybrids and, unlike Nissan, offers the models in the United States, where demand for the cars has surged."Both companies lack compelling EV offerings, and the combined entity would still face the challenge of a new EV model pipeline and R&D in technology," said Vincent Sun, a senior analyst at Morningstar. In China, the shift to electrified cars has seen consumer interest focus on software-driven features and the digital experience inside the car, areas where the Chinese makers excel. Both Honda and Nissan have lost ground in China, the world's biggest auto market. REUTERS

Honda-Nissan merger requires time

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