Honda and Nissan’s merger risks failure due to cultural clashes and misalignment. Find out why HMC and NSANY stocks are uncertain investments.

Honda may soon get its first opportunity to make a true full-size SUV and pickup truck, according to AutomotiveNews. After speaking with Honda Motor Co.'s executive vice president, Noriya Kaihara, the outlet learned that the merger between Honda and Nissan could give Honda access to Nissan's experience and knowledge in producing full-size body-on-frame trucks.

Honda has announced an agreement to merge with Nissan in a deal worth a reported $54 billion. Mitsubishi, which has long been allied with Nissan, will decide by the end of January 2025 whether to join the venture, potentially increasing the total merger value to $58 billion.

Honda’s largest crossover is the Pilot, which spans 199.9 inches (5,077 mm) long and has seating for up to eight people. The Armada is considerably larger as it measures 209.6 inches (5,324 mm) long. It’s also more burly thanks to a twin-turbo 3.5-liter V6 developing 425 hp (317 kW / 431 PS) and 516 lb-ft (699 Nm) of torque.

Plus, auto suppliers are scrambling to move production to dodge tariffs and China's exports expected to drop for 2025.

Honda’s CEO struggles to explain why the merger is happening, analysts remain skeptical, and Foxconn waits in the wings.

Honda and Nissan have strong presences in major markets like North America, Europe, and Japan. However, they are struggling in China. “Both Honda and Nissan have significant overcapacity issues in China, which requires optimization before any merger talks, James Hong, an analyst at Macquarie Securities Korea Ltd., said.

Here's a quick look at what a combined Honda and Nissan would mean for the companies, and for the auto industry.