Honda and Nissan’s planned merger, set for 2026, is risky due to potential integration issues. Read why I think investors should avoid or sell both companies' shares.

With their merger seeming increasingly inevitable, Honda and Nissan are considering more than just the benefits of cost savings on future electric products. With Trump returning to office and some import manufacturers feeling pressure to adjust their production strategies,

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

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.

Honda executives have hinted at the possibility of entering the full-size SUV market, leveraging its upcoming merger with Nissan.During a media roundtable at CES, Noriya Kaihara, Honda’s executive vice president,

Once they find a common direction, Honda and Nissan will draw up a definitive agreement to merge, including a plan to transfer shares, by June 2025. If that goes through, they will seek to get plans approved by April 2026, with the merger happening later that year.

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.

When asked how the upcoming merger with Nissan and Mistubishi will impact collaborations with GM, a Honda executive said they'll "remain unaffected."

In 1993, GM had controlling interest in Isuzu and signed a deal to supply its Rodeo to become Honda’s first SUV, rebadged the Passport. The Isuzu Trooper was then rebadged to become the Acura SLX, and GM’s Japanese brand got the Honda Odyssey minivan to become the Isuzu Oasis.

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

A Honda executive suggested the two companies could co-develop future full-size vehicles or that Honda could utilize existing full-size Nissans for its lineup.