The potential merger between Honda and Nissan, two of Japan's automotive giants, is facing significant challenges as both companies struggle to justify the strategic benefits of the union. The merger talks, which have been ongoing for several months, aim to create a stronger competitive position in the rapidly evolving electric vehicle (EV) market. However, recent statements from Honda's CEO, Toshihiro Mibe, have highlighted the difficulties in pinpointing the advantages of such a partnership.

During a recent press conference, Mibe candidly admitted that it was "difficult" to explain why Nissan would make a good business partner for Honda. This admission has fueled skepticism among industry analysts and investors, who question the rationale behind the merger. Analysts believe that Honda's ideal partner would be a more financially stable company, rather than one facing its own set of challenges.

The merger is seen by some as a defensive move to prevent a hostile takeover of Nissan by a foreign company, such as Foxconn. Despite Mibe's assertion that the merger is "not a rescue," the financial struggles of both companies suggest otherwise. Honda has been grappling with its EV strategy following the collapse of its partnership with General Motors, while Nissan's financial woes and declining market share have left it vulnerable.