The industry that helped turn Japan into an economic juggernaut is undergoing its biggest change in years, with two of the country’s best-known carmakers looking to join forces.

As talks between the automakers continue, analysts say a combination makes sense but may face hurdles, including short-term financial hardship.

Honda Motor Co. and Nissan Motor Co. both saw global vehicle sales stagnate or fall in 2024, underscoring the need for the pair to combine and arrest their sliding market shares.

Despite reports that Mitsubishi would not be a part of the Honda-Nissan merger, officially no decision has been made

As Honda and Nissan push forward with merger plans, Mitsubishi Motors may bow out, citing doubts about its influence in the new partnership.

Honda’s sales slipped 4.6% to 3.8 million units last year, as production dropped 11% to 3.7 million vehicles. Sales at smaller Japanese rival Nissan decreased 0.8% to 3.3 million for the 12 months, while output declined 8.7% to 3.1 million units.

The Type 2 Split Screen was launched in 1950 and remained in production until 1967 at Volkswagen’s factory in Wolfsburg, Germany. In the 1960s, the Type 2 morphed from its commercial van image, with variants such as the Kombi, Microbus, Samba and Camper associating the vehicle with holiday-making.

There's a lot at stake here, with other players like Renault and Mitsubishi involved as well, to say nothing about Foxconn's intervention in the matter. At the core of this merger is the elephant in the room,

Renault is looking to secure a premium payout for its 36% stake in Nissan if Honda moves forward with an acquisition of its Japanese rival.According to a report from Bloomberg, representatives from the French automaker traveled to Japan this week to express concerns about the structure of a potential Honda-Nissan merger,

Japan's automaker Nissan is offering voluntary separation packages to employees at three of its facilities in the US.