Nissan and Honda are in discussions to merge by 2026, aiming to become the world's third-largest automaker. This move is in response to the global shift towards electrification and rising competition from Chinese automakers who have captured significant market share with affordable electric vehicles. Both Nissan and Honda face challenges; Nissan has experienced declining sales in the U.S., while Honda is struggling in China. A merger could allow for shared expertise and cost reduction, but historical examples like DaimlerChrysler show that not all mergers succeed. Analysts predict that, if completed, this merger could redefine which models and brands are retained, with a focus on electric vehicle development.