Automatic, Systematic, Merger-matic: Honda and Nissan's Hotwired Hookup

Honda and Nissan are revving up to go together like ramma-lamma-lamma-ka-dingity-da-dinga-dong! These two Japanese heavyweights are in talks to merge their operations, potentially creating a turbocharged entity that would cruise into third place on the global automaker leaderboard.

This high-octane gossip started burning rubber when Foxconn, the tech giant that's been fine-tuning your iPhones, tried to get under Nissan's hood. That move seems to have kicked Honda and Nissan's merger talks into overdrive. When the news hit the street, Nissan's stock price went from 0 to 60 faster than you can burn up the quarter-mile, jumping a whopping 24%. Meanwhile, Honda's shares hit a bit of a speed bump, downshifting by 3%.

Let's take a look under Nissan's hood for a moment. They've been running on fumes lately, forced to pump the brakes on production and let go of 9,000 crew members globally. Their showroom's been looking a bit dusty, with consumers giving their lineup the cold shoulder. But this merger could be just the high-performance fuel injection they need!

Now, here's where it gets interesting. Renault, who's been riding shotgun with Nissan for years (they've got a 36% stake in Nissan's garage), seems to be giving the green light to this potential tag-team. They're probably hoping this new partnership will help Nissan shift out of reverse.

Tell us more! Tell us more! Word on the street is that Mitsubishi might join this carpool, too. They've already got some capital ties with Nissan, so it wouldn't be too much of a stretch to see them hop in the backseat of this mega-merger.

If the Japanese media got their timing right, we might see this deal crossing the finish line as soon as December 23rd. Honda and Nissan are apparently gearing up to sign a memorandum of understanding to discuss shared equity stakes in a new holding company. It's like they're designing a whole new chassis for their combined operations!

So, what's driving this deal? Well, the auto world's shifting gears big time. The race towards electrification is on, and these Japanese giants need to tune up their game to stay in the fast lane. They're facing some serious competition, especially in China where local manufacturers like BYD and global players like Tesla are leaving them in the dust.

Together, Honda, Nissan and Mitsubishi sold about 4 million rides in the first half of the year. That's a lot of rubber on the road, but it's still in Toyota's rearview mirror - the big T moved 5.2 million units in the same period.

This merger isn't just about looking good in the showroom - it's about creating a powerhouse that can go toe-to-toe with Toyota and its alliance of brands (Subaru, Suzuki, and Mazda). It's like they're forming their own automotive gang to take on Toyota's T-Birds!

As for Foxconn, their interest in Nissan isn't just kicking the tires. They're looking to soup up their EV game, similar to how they got under the hood at Sharp Corp. back in 2016. They might be eyeing Nissan's electric know-how to turbocharge their own EV ambitions.

Cue Danny Zuko and Greased Lightnin’! This could rival the race for pink slips at Thunder Road. We're talking about a potential redesign of the entire Japanese automotive landscape, condensing it into two main camps. Rev those engines, cats and kittens!

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