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,

Nissan and Honda have collaborated on various projects over the years, mainly to share development costs and increase economies of scale in low-volume vehicle segments, including mini-vehicles and commercial vehicles. More recently they extended their collaboration to include the development of hybrid and autonomous driving technologies.

A Honda exec has suggested the company is eyeing its own version of the Nissan Armada. The SUV would dwarf the Pilot and compete with Tahoe, Sequoia, and other big players. Future plans suggest Honda and Nissan may co-develop full-size SUVs for shared markets.

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.