Honda and Nissan announced plans to merge in 2026, aiming to create the world’s third-largest automotive group by sales, trailing only Toyota and Volkswagen. The merger is seen as a strategic move to enhance competitiveness against rapidly advancing Chinese manufacturers in the electric vehicle market. Honda’s CEO, Toshihiro Mibe, highlighted the need for increased capacity to compete effectively by 2030. Mitsubishi Motors, partially owned by Nissan, may also join the merger. The announcement raises concerns about potential job losses within the industry.