While Honda does have the Prologue, that vehicle was part of a $5 billion joint venture with GM that only lasted through the development of two vehicles. The Prologue has been a surprise EV hit, selling over 33,000 in 2024 and outselling the larger gas-powered Honda Passport.

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

Plus, auto suppliers are scrambling to move production to dodge tariffs and China's exports expected to drop for 2025.

Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition in the segment raises questions about whether they can make it work in time. The Japanese automakers said they had agreed to begin formal talks on a merger, aiming to finalize the deal by August 2026.

Honda Motor Co. absorbing Nissan Motor Co. could give the two struggling Japanese brands the scale they need to take on China’s BYD Co., sales figures released Wednesday show.

Nissan and Honda have collaborated on various projects over the years, mainly to share development costs and increase economies of scale in low-volume vehicle segments, including mini-vehicles and commercial vehicles. More recently they extended their collaboration to include the development of hybrid and autonomous driving technologies.

The problem is there is no likely outcome that would leave both companies and their employees better off than they are today.

Honda may soon get its first opportunity to make a true full-size SUV and pickup truck, according to AutomotiveNews. After speaking with Honda Motor Co.'s executive vice president, Noriya Kaihara, the outlet learned that the merger between Honda and Nissan could give Honda access to Nissan's experience and knowledge in producing full-size body-on-frame trucks.