*Honda and Nissan, like most of the global automobile manufacturers, are struggling with rising costs, reduced sales, and China鈥檚 ever-increasing market share, says report

Emmanuel Akosile | 绿帽献妻

Honda and Nissan, two leading automobile manufacturers, have announced the companies are currently in merger talks with the aim of becoming the third-largest automaker 2026.

绿帽献妻 gathered that Nissan has been struggling lately, with sluggish sales and growing debt.

Makoto Uchida, President and Chief Executive Officer (CEO) of

Nissan, said it鈥檚 in the best interests of both companies to unite, agency report stated.

Uchida averred: “I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands.

鈥淭ogether, we can create a unique way for them to enjoy cars that neither company could achieve alone.”

Karl Brauer, Executive Analyst at iSeeCars.com, disclosed both Honda and Nissan, like most of the global auto industry players, are struggling with rising costs, reduced sales, and China鈥檚 ever-increasing market share.

Brauer also told ConsumerAffairs: “Nissan is also facing a massive debt increase as over $5 billion in bonds come due in 2026, while Honda鈥檚 relatively small size limits its ability to invest in electric vehicle development.

鈥淭he two automakers are looking to address these challenges by sharing costs and engineering resources, but successfully merging two companies won鈥檛 be easy, and the benefits will take years to manifest.鈥�

Similarly, Honda Director Toshihiro Mibe reportedly affirmed that the two auto companies are at the beginning of their discussions, and have not yet decided on who the businesses would be integrated.

Mibe, nonetheless, said both companies offer a lot of strengths.

The industry as a whole may be facing challenges as sales in some sectors have slowed, as consumers push back on rising prices, report said.

Some companies that have invested heavily in electric vehicles have faced issues since consumers have not embraced Electric Vehicles (EVs) as expected.