Nissan and Honda announced a merger, set to be completed by August 2026

Current Context: On December 23, 2024, Nissan and Honda announced their plans to merge, with the merger expected to be completed by August 2026.

• This significant strategic move will result in the formation of the world's third-largest automaker by sales, following Toyota and Volkswagen.
• The merger aims to:
• Combine their technological and manufacturing strengths.
• Enhance their global market presence.
• Optimize resources and investments in research and development, particularly in the areas of electric vehicles (EVs) and autonomous driving technologies.
• The collaboration is expected to lead to increased efficiency, expanded product offerings, and a stronger competitive edge in the global automotive market.
• Both companies anticipate that this merger will help them navigate the evolving automotive landscape more effectively and meet the growing demand for sustainable and innovative transportation solutions.

Question:

1 What position will the newly merged entity hold in the global automotive market based on sales?

• A) First-largest automaker
• B) Second-largest automaker
• C) Third-largest automaker
• D) Fourth-largest automaker

Answer: C) The merger of Nissan and Honda will result in the formation of the world's third-largest automaker by sales, following Toyota and Volkswagen.