Honda Nissan Billion: Latest Updates and Analysis

Honda and Nissan’s $60 billion EV partnership plans are already falling apart

The landmark EV merger, which would create the world’s third-largest automaker, may not happen after all. Honda and Nissan’s EV partnership plans are reportedly already being called off. The partnership was expected to help the Japanese automakers survive after falling behind BYD, Tesla, and others as the industry shifts to electric.

Why are Honda and Nissan’s EV merger plans on hold?

After Honda and Nissan signed a memorandum of understanding (MOU) in December, confirming plans to create a new joint EV holding enterprise, the merger is already being called off.

During a board meeting on Wednesday, Nissan introduced it was considering scrapping the EV merger. , the announcement came after Nissan informed Honda that it planned to put talks on hold late Tuesday.

As Reuters reported, Nissan and Honda stated the Nikkei study was not based on official business announcements. A final decision on the merger is planned for mid-February.

With around 8 million in combined sales, the partnership would have established the third-largest auto group, behind Toyota and Volkswagen, with a value of around $58 billion.

Nissan already presented it was cutting around 9,000 jobs and 20% of global output to cut costs and improve profits. Will it be enough without Honda’s help?

Nissan and Honda are quickly falling behind in the global auto market, with new threats like Tesla, BYD, and other Chinese automakers gaining momentum.

For the first time, BYD sold more vehicles globally than Nissan and Honda last year. With new EVs arriving in Europe, Southeast Asia, South and Central America, and several other overseas markets, BYD expects 2025 to be even bigger. In its first full sales year, BYD even sold more electric vehicles than Toyota in Japan, its home market.

Japanese automakers have already lost significant market share in China, one of their most crucial markets, but now sales are falling in other key regions.

The merger was expected to help the Japanese auto giants catch up as the industry shifts to EVs, “which is expressed to occur once every 100 years,” ’s CEO Toshihiro Mibe.

During a press conference in December, Mibe explained that “the rise of Chinese automakers and new players has changed the car industry quite a lot,” adding, “We have to build up capabilities to fight with them by 2030, otherwise we’ll be beaten.”.

Can Honda and Nissan survive the transition without each other? Let us know what you think in the comments below.

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Ionna scales up toward targeted 30,000 EV chargers by 2030

The [website] EV charging network Ionna is picking up speed in its infrastructure build-out as the nascent network aims to make good on its promise of installing tens of thousands of electric vehicle chargers over the next five years.

It stated on Tuesday in a press release that it is transitioning "from public beta to full-scale national release" following the opening of its first location and the conclusion of a testing program in 2024.

The testing program involved more than 4,400 charging sessions with more than 80 unique EV models, dispensing nearly 63,000 kwh of energy, . It added that the goal was to "stress-test" the network; now the focus shifts to the network build-out.

Ionna was initially backed by seven automakers, including BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis. Toyota joined Ionna in 2024. The network was unveiled in 2023 as the first potential rival to the Tesla Supercharger network in North America, and has steadily built momentum as plans for continued expansion of the Supercharger network have fluctuated.

Ionna now claims to have more than 100 contracted charging sites nationwide, and just this week announced new sites in Houston, Texas; Abilene, Kansas; and Wilcox, Arizona. Those join six already under construction. They'll be accompanied by new tech features, including expanded Plug & Charge compatibility and Amazon "Just Walk Out" tech that lets drivers grab refreshments without having to wait in line.

Its first location is in Apex, [website], in what Ionna refers to as a "Rechargery"—in a converted gas station.

Ionna hopes to have 1,000 new charging bays online by the end of the year, on the way to a goal of 30,000 bays by 2030 that was first unveiled in 2023. "Bays" is the metric Ionna uses in place of charging connectors. It essentially means charging spots, although each spot can have multiple connectors. Those connectors can be CCS or NACS, it has noted.

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This is the Chinese EV Ford’s CEO says it needs to beat ‘straight up in a street fight’

After announcing its electric vehicle business lost over $5 billion in 2024, Ford could face even more headwinds this year. Despite the threat of new tariffs and fewer government incentives, CEO Jim Farley stressed Ford is still “really confident” in its EV strategy. Farley revealed that Chinese EV makers are becoming a major global force, and even with tariffs, Ford needs to beat them “straight up in a street fight.” This is the electric car he was referring to.

Ford reported fourth-quarter earnings on Wednesday, beating Wall Street’s top- and bottom-line estimates. Despite posting $[website] billion in Q4 revenue, Ford’s model e division reported an EBIT loss of $[website] billion.

The EV business lost $[website] billion last year after losing $[website] billion in 2023. On the organization’s earnings call, Farley stated new competition led to increased pricing pressure. Ford expects Model e to lose another $5 billion to $[website] billion this year. In total, the organization is forecasting an adjusted EBIT of $7 billion to $[website] billion in 2025.

Like GM, Ford did not factor in the potential impacts of tariffs or other changes in policy by the Trump administration.

Farley explained on the call that “There’s no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and an adverse effect on the US jobs.”.

Ford’s CEO mentioned he looks forward to working with government leaders to ensure they are “strengthening, not weakening our nation’s auto industry.”.

The tariff situation, growing demand for the latest tech and software, and “the Chinese OEMs growing to become a global reality,” Farley mentioned, “these dynamics will all play out for some time to come.”.

Ford CEO warns Chinese EV makers are a global threat.

Ford sells some electric cars outside of the US, including the new electric Puma, Explorer, and Capri models, launched in Europe, so it does have an idea of the changing market dynamics.

After accounting for 8% of car sales in the US last year, Farley presented EVs are growing, and “people who buy these vehicles don’t go back to combustion.” He added that it is a “very vibrant market” and a “global capability for Ford.”.

As a global player, it will need to compete with Chinese EVs, which Farley has previously called an “existential threat” to the industry. During the earnings call, Farley touched on the subject, saying they continue to expand and are becoming “a major force in our industry.”.

After Morgan Stanley analyst Adam Jonas asked, “Do you think that [website] tariff policies will be successful in keeping Chinese EVs out of the US market long term,” Farley mentioned the topic “is really pertinent to us.”.

Ford’s CEO added, “The level of subsidies that these companies have in China is very material as well as these are digital vehicles with digital footprints and really deep into people’s digital life.” Farley explained, “On the kind of unfair part or the subsidy part, I think we’ll have to sort that out as a country.”.

At the end of the day, “the business has to stand on its own.” Ford will work with government partners to make it a level playing field, but “in the end of the day, it’s management’s responsibility to beat the SU7 straight up in a street fight.”.

The SU7 is Xiaomi’s first self-developed electric car. After shipping one to the US and driving it for a few months, Farley called it “fantastic” and didn’t want to give it up.

After launching the SU7 last April, Xiaomi revealed it had already delivered over 135,000 models in 2024. The SU7 starts at around $30,000 (215,900 yuan).

Ford is betting on its low-cost platform, which is being developed by a team of former Tesla, Rivian, Lucid, and Apple engineers, to help it compete.

The first models, due out in 2027, are expected to be a smaller electric pickup and SUV, starting at about $30,000.

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