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Enrique Dans for dummies

What does the proposed merger of Honda and Nissan tell us about the state of the Japanese motor industry?

25 Dec 2024

Description

Honda and Nissan's proposed merger, driven by the need to compete in the rapidly evolving electric vehicle market, is analyzed. The article suggests this merger is a response to intense competition from companies like Tesla and BYD, and the significant financial challenges facing both Japanese automakers. While the merger aims to create a larger entity capable of investing in electric vehicle technology, concerns exist regarding operational integration and potential redundancy. The author expresses skepticism about the merger's ultimate success, highlighting the considerable challenges involved in combining two large companies with differing corporate cultures. Ultimately, the article frames the merger as a potentially risky but necessary measure for survival within the transforming automotive industry. This article is also available in English on my Medium page, «What does the proposed merger of Honda and Nissan tell us about the state of the Japanese motor industry?»

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