Traditional automakers are running out of road, caught between two forces that are reshaping the industry: Chinese electric-vehicle makers upending once-profitable markets and the capital demands of the electric transition. More consolidation looms.
The potential tie-up between Honda Motor and Nissan Motor-helmed by CEOs Toshihiro Mibe and Makoto Uchida, respectively-is the latest signal of this trend. The two Japanese giants announced a plan to merge in 2026, creating the third-largest automaker in the world. But instead of being a show of strength, the combination more reflects the grim reality that traditional automakers are facing.
For one, China looms large in the decision. Nissan has been struggling to adapt to the new industry landscape in the country, which was once a profit paradise for global automakers. In the six months ended in September, it sold 339,000 cars in China, less than half of the level for the same period in 2018.
This story is from the January 14, 2025 edition of The Wall Street Journal.
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This story is from the January 14, 2025 edition of The Wall Street Journal.
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