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One of the most noteworthy developments this week is the memorandum of understanding signed between Honda and Nissan, aiming for a potential merger that could create the world's third-largest automaker by sales volume, following Toyota and Volkswagen. If finalized, this joint venture will focus on a new holding company set to debut in August 2026.

The two manufacturers have been collaborating since early 2024 on the development of a next-generation software-defined vehicle platform, while also exploring shared battery supply chains, especially focusing on resources from their joint efforts with LG Energy Solutions. Given the struggles of Nissan's Leaf and Honda’s limited EV offerings, this merger could provide the scale and resources needed for a competitive future.