Behind a potential Honda and Nissan tie-up, the existential threat posed by Chinese EVs
In the case of Honda and Nissan's potential merger, it is mostly defensive as Chinese rivals take the world by storm. While the challenge from China's seemingly boundless EV expertise looms large for all traditional automakers, for Japan it represents a threat to the vast car-manufacturing supply chain that has been the country's economic engine for years. Honda, Japan's second-largest car company, and Nissan, its third-largest, are in talks to deepen ties, including the possibility of setting up a holding company, two people familiar with the matter said on Wednesday.
