It hasn't been a month since two Japanese automakers, Honda and Nissan, officially announced their merger plans, but it appears that it's already facing a major hurdle. According to reports coming from Japan,

Honda, Nissan, and Renault's merger may take on a new direction, per Bloomberg. According to the outlet, Honda is worried that Renault, which owns about 35 percent of Nissan, may be bought up by a third party while the deeply complex merger works its way toward completion.

The mooted Honda Nissan merger and the fallout from leadership change at Stellantis suggests the auto industry must brace for turmoil, where size is a survival necessity.

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

The Honda-Nissan merger would be a historic move if it happens, but French automaker Renault has already put an unexpected bump in the road.

Nissan is facing critical financial and competitive challenges, with operating profits dropping 90% and net income falling 94% in the first half of fiscal year 2024 compared to the same period a year earlier.

Nissan now faces an uphill battle to triple its profits by 2026 or risk losing Honda. Honda’s financial stability highlights the stark contrast to Nissan’s weak earnings outlook. Nissan’s cuts haven’t solved its biggest problem,