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What a merger between Nissan and Honda means for the automakers and the industry

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What a merger between Nissan and Honda means for the automakers and the industry

BANGKOK (AP) — Japanese automakers Honda and Nissan will attempt to merge and create the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses. Honda will initially lead the new management, retaining the principles and brands of each company.

Following is a quick look at what a combined Honda and Nissan would mean for the companies, and for the auto industry.

An industry shakeup

The ascent of Chinese automakers is rattling the industry at a time when manufacturers are struggling to shift from fossil fuel-driven vehicles to electrics. Relatively inexpensive EVs from China’s BYD, Great Wall and Nio are eating into the market shares of U.S. and Japanese car companies in China and elsewhere.

Japanese automakers have lagged behind big rivals in EVs and are now trying to cut costs and make up for lost time.

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Nissan, Honda and Mitsubishi announced in August that they will share components for electric vehicles like batteries and jointly research software for autonomous driving to adapt better to dramatic changes in the auto industry centered around electrification. A preliminary agreement between Honda, Japan’s second-largest automaker, and Nissan, third largest, was announced in March.

A merger could result in a behemoth worth about $55 billion based on the market capitalization of all three automakers.

Joining forces would help the smaller Japanese automakers add scale to compete with Japan’s market leader Toyota Motor Corp. and with Germany’s Volkswagen AG. Toyota itself has technology partnerships with Japan’s Mazda Motor Corp. and Subaru Corp.

What would Honda need from Nissan?

Nissan has truck-based body-on-frame large SUVs such as the Armada and Infiniti QX80 that Honda doesn’t have, with large towing capacities and good off-road performance, said Sam Fiorani, vice president of AutoForecast Solutions.

Nissan also has years of experience building batteries and electric vehicles, and gas-electric hybird powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said.

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“Nissan does have some product segments where Honda doesn’t currently play,” that a merger or partnership could help, said Sam Abuelsamid, a Detroit-area automotive industry analsyt.

While Nissan’s electric Leaf and Ariya haven’t sold well in the U.S., they’re solid vehicles, Fiorani said. “They haven’t been resting on their laurels, and they have been developing this technology,” he said. “They have new products coming that could provide a good platform for Honda for its next generation.”

Why now?

Nissan said last month that it was slashing 9,000 jobs, or about 6% of its global work force, and reducing global production capacity by 20% after reporting a quarterly loss of 9.3 billion yen ($61 million).

Earlier this month it reshuffled its management and its chief executive, Makoto Uchida, took a 50% pay cut to take responsibility for the financial woes, saying Nissan needed to become more efficient and respond better to market tastes, rising costs and other global changes.

Fitch Ratings recently downgraded Nissan’s credit outlook to “negative,” citing worsening profitability, partly due to price cuts in the North American market. But it noted that it has a strong financial structure and solid cash reserves that amounted to 1.44 trillion yen ($9.4 billion).

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Nissan’s share price has fallen to the point where it is considered something of a bargain. A report in the Japanese financial magazine Diamond said talks with Honda gained urgency after the Taiwan maker of iPhones Hon Hai Precision Industry Co., better known as Foxconn, began exploring a possible acquisition of Nissan as part of its push into the EV sector.

The company has struggled for years following a scandal that began with the arrest of its former chairman Carlos Ghosn in late 2018 on charges of fraud and misuse of company assets, allegations that he denies. He eventually was released on bail and fled to Lebanon.

Honda reported its profits slipped nearly 20% in the first half of the April-March fiscal year from a year earlier, as sales suffered in China.

More headwinds

Toyota made 11.5 million vehicles in 2023, while Honda rolled out 4 million and Nissan produced 3.4 million. Mitsubishi Motors made just over 1 million. Even after a merger Toyota would remain the leading Japanese automaker.

All the global automakers are facing potential shocks if President-elect Donald Trump follows through on threats to raise or impose tariffs on imports of foreign products, even from allies like Japan and neighboring countries like Canada and Mexico. Nissan is among the major car companies that have adjusted their supply chains to include vehicles assembled in Mexico.

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Meanwhile, analysts say there is an “affordability shift” taking place across the industry, led by people who feel they cannot afford to pay nearly $50,000 for a new vehicle. In American, a vital market for companies like Nissan, Honda and Toyota, that’s forcing automakers to consider lower pricing, which will eat further into industry profits.

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AP Auto Writer Tom Krisher contributed to this report from Detroit.

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‘God of War’ Creator Says TV First Look Is ‘So Dumb’ and ‘Terrible’: Looks Like He’s ‘S—ing in the Woods’

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‘God of War’ Creator Says TV First Look Is ‘So Dumb’ and ‘Terrible’: Looks Like He’s ‘S—ing in the Woods’

David Jaffe, the creator of the “God of War” video games, took to his YouTube channel on Saturday to slam the first look image from Amazon Prime‘s upcoming “God of War” TV show. He said the frame, which features franchise hero Kratos in the woods with his son, was “so bad in so many ways.”

“I’m sure everybody’s trying real hard, [but] it’s so dumb,” Jaffe said. “But let’s be incredibly clear, okay? Two things can be true. This can be a terrible image, and it is. It’s so bad in so many ways, which we’ll talk about in a moment. And Ron Moore is awesome, who is the showrunner… This guy is a juggernaut of a talented fellow. I have absolutely no doubt it is going to be a good show.”

Jaffe added that he doesn’t mind that star Ryan Hurst isn’t a dead ringer for Kratos, but instead takes issue with his expression and pose in what he described as a “dumb fucking image.”

“Kratos in this pose with this expression, not the guy’s face, but this expression, he just looks stupid,” Jaffe explained. “If you’re going to reveal, to most people, a brand new character that you hope is going to carry your series, for the first time, and they’ve never really seen this before, and this is the way you introduce them?”

He continued, “Maybe that’s conscious. Maybe they’re like, ‘Well, what we really want to focus on is the father-son story. And if we focus on him being like, Spartan rage, and all that, maybe people are like, “I don’t want to watch that show.”’ Ok maybe. But then, at that point, could you find a picture that doesn’t look like he’s shitting in the woods? Cause that’s what the picture looks like.”

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Amazon Prime unveiled the first look photo on Feb. 27. Along with Hurst as Kratos and Callum Vinson as his son, other cast members include Max Parker as Heimdall, Ólafur Darri Ólafsson as Thor, Mandy Patinkin as Odin, Alastair Duncan as Mimir, Danny Woodburn and Jeff Gulka as brothers Brok and Sindri and Ed Skrein as Baldur.

Watch Jaffe’s entire reaction below.

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Iran nuclear talks ‘didn’t pass the smell test’ before Trump launched strikes, says Vance

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Iran nuclear talks ‘didn’t pass the smell test’ before Trump launched strikes, says Vance

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Vice President JD Vance confirmed Monday that negotiations with Iran over its nuclear program collapsed after U.S. officials concluded Tehran’s claims “did not pass the smell test,” prompting President Donald Trump to authorize Operation Epic Fury.

Speaking on “Jesse Watters Primetime,” Vance said U.S. envoys — including Steve Witkoff, Secretary of State Marco Rubio and Jared Kushner — had conducted rounds of “deliberate” talks in Geneva with the Iranian delegation.

The discussions were aimed at curbing Tehran’s nuclear program in exchange for sanctions relief and averting a broader conflict, he said, but ultimately broke down.

“But the Iranians would come back to us and they’d say, ‘Well, you know, having enrichment for civilian purposes, for energy purposes, is a matter of national pride,’” Vance said.

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Omani Foreign Minister Badr al-Busaidi, President Donald Trump’s Special Representative for the Middle East, Steve Witkoff and U.S. negotiator Jared Kushner meet ahead of the U.S.-Iran talks, in Muscat, the capital of Oman, on Feb. 06, 2026.  (Oman Foreign Ministry/Anadolu via Getty Images)

“And so we would say, ‘OK, that’s interesting, but why are you building your enrichment facilities 70 feet underground? And why are you enriching to a level that’s way beyond civilian enrichment and is only useful if your goal is to build a nuclear bomb?’” he said.

“Nobody objects to the Iranians being able to build medical isotopes; the objection is these enrichment facilities that are only useful for building a nuclear weapon,” Vance clarified.

“It just doesn’t pass the smell test for you to say that you want enrichment for medical isotopes, while at the same time trying to build a facility 70 to 80 feet underground,” he explained.

TRUMP DECLARES ‘I GOT HIM BEFORE HE GOT ME’ AFTER IRAN’S SUPREME LEADER KILLED IN STRIKE

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This image from video provided by U.S. Central Command shows a missile being launched from a U.S. Navy ship in support of Operation Epic Fury on Saturday, Feb. 28, 2026. (U.S. Central Command via AP)

Vance spoke as Operation Epic Fury ended its third day. Launched on Feb. 28, U.S. and Israeli forces carried out coordinated precision strikes deep inside Iran aimed at crippling Tehran’s missile arsenal and nuclear infrastructure.

A key issue had been Iran enriching uranium to high levels, including material around 60% purity — a fraction of weapons-grade but far above limits set under the 2015 nuclear deal — keeping international alarm high over proliferation risks.

“We destroyed Iran’s ability to build a nuclear weapon during President Trump’s term,” Vance told Watters. “We set them back substantially. But I think the President was looking for the long haul,” he said.

“Trump was looking for Iran to make a significant long-term commitment that they would never build a nuclear weapon, that they would not pursue the ability to be on the brink of a nuclear weapon.”

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FIRES RAGE AT IRAN’S BANDAR ABBAS NAVAL HEADQUARTERS, STRAIT OF HORMUZ TRAFFIC STALLED

Vice President JD Vance speaks with Breitbart News Washington bureau chief Matthew Boyle at Andrew W. Mellon Auditorium, Nov. 20, 2025, in Washington.  (Julia Demaree Nikhinson/AP Photo)

“He wanted to make sure that Iran could never have a nuclear weapon, and that would require fundamentally a change in mindset from the Iranian regime.”

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“The President is not going to rest until he accomplishes that all-important objective of ensuring that Iran can’t have a nuclear weapon, not just for the next few years, not just because we obliterated for dough or some other.”

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“There’s just no way that Donald Trump is going to allow this country to get into a multiyear conflict with no clear end in sight and no clear objective,” Vance added while describing that the administration would prefer to see “a friendly regime in Iran, a stable country, a country that’s willing to work with the United States.”

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Unexpected birth brings hope to near-extinct Amazon tribe

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Unexpected birth brings hope to near-extinct Amazon tribe

Pugapia and her daughters Aiga and Babawru lived for years as the only surviving members of the Akuntsu, an Indigenous people decimated by a government-backed push to develop parts of the Amazon rainforest. As they advanced in age without a child to carry on the line, many expected the Akuntsu to vanish when the women died.

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That changed in December, when Babawru – the youngest of the three, in her 40s – gave birth to a boy. Akyp’s arrival brought hope not just for the Akuntsu line but also for efforts to protect the equally fragile rainforest.

“This child is not only a symbol of the resistance of the Akuntsu people, but also a source of hope for Indigenous peoples,” says Joenia Wapichana, president of Brazil’s Indigenous protection agency, known as Funai. “He represents how recognition, protection and the management of this land are extremely necessary.”

Protecting Indigenous territories is widely seen as one of the most effective ways to curb deforestation in the Amazon, the world’s largest rainforest and a key regulator of global climate.

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Researchers warn that continued forest loss could accelerate global warming. A 2022 analysis by MapBiomas, a network of nongovernmental groups tracking land use, found Indigenous territories in Brazil had lost just 1 per cent of native vegetation over three decades, compared with 20 per cent on private land nationwide.

In Rondonia state, where the Akuntsu dwell, about 40 per cent of native forest has been cleared, and what remains untouched is largely within conservation and Indigenous areas. The Akuntsu’s land stands out in satellite images as an island of forest surrounded by cattle pasture as well as soy and corn fields.

In the 1980s, an agriculture push sparked attacks in Rondonia

Rondonia’s deforestation traces back to a government-backed push to occupy the rainforest during Brazil’s military regime in the 1970s. Around the same time, an infrastructure program financed in part by the World Bank promoted domestic migration to the Amazon, including the paving of a highway across the state.

In the 1980s, Rondonia’s population more than doubled, according to census data. Settlers were promised land titles if they cleared the forest for agriculture and risked losing claims if Indigenous people were present, fuelling violent attacks by hired gunmen on Indigenous groups such as the Akuntsu.

Funai made first contact with the Akuntsu in 1995, finding seven survivors. Experts believe they had numbered about 20 a decade earlier, when they were attacked by ranchers seeking to occupy the area. Funai agents found evidence of the assault, and when they contacted the Akuntsu, the survivors recounted what happened. Some still bore gunshot wounds.

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The last Akuntsu man died in 2017. Since then, Babawru lived with her mother, Pugapia, and Aiga, her sister. The women, whose ages aren’t known for certain, have chosen to remain isolated from the non-Indigenous world, showing little interest in it.

In 2006, Funai granted territorial protection to the Akuntsu, establishing the Rio Omere Indigenous Land, which they have since shared with the Kanoe people. The two groups, once enemies, began maintaining contact, usually mediated by officials. The relationship is complex, with cooperation but also cultural differences and language barriers.

The Associated Press requested a facilitated interview with the women through Funai, but the agency didn’t respond.

Amanda Villa, an anthropologist with the Observatory of Isolated Peoples, says Akuntsu women depend on Kanoe men for tasks considered masculine, such as hunting and clearing fields. The two groups have also exchanged spiritual knowledge – the current Kanoe spiritual leader, for example, learned from the late Akuntsu patriarch.

But the most consequential development for the future of the Akuntsu may have occurred last year, when Babawru became pregnant by a Kanoe man.

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Linguist Carolina Aragon is the only outsider able to communicate with the three women after years studying and documenting their language. She works closely with Funai, translating conversations almost daily through video calls. Aragon also supported Babawru remotely during her labour and was with her during an ultrasound exam that confirmed the pregnancy.

Aragon said Babawru was stunned by the news. “She said, ‘How can I be pregnant?’” Aragon recalled. Babawru had always taken precautions to avoid becoming pregnant.

Social collapse shaped the Akuntsu’s choices

The surviving Akuntsu women had decided they would not become mothers. The decision was driven not only by the absence of other men in their community, but also by the belief that their world was disorganised – conditions they felt were not suitable for raising a child.

“You can trace this decision directly to the violent context they lived through,” says Villa, the anthropologist. “They have this somewhat catastrophic understanding.”

The Akuntsu believed they could not bring new life into a world without Akuntsu men who could not only perform but also teach tasks the group considers male responsibilities, such as hunting and shamanism.

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“A breakdown of social relations that followed the genocide shaped their lives and deepened over the years. That does lead people to think – and rethink – the future,” Aragon says. “But the future can surprise everyone. A baby boy was born.”

Aragon says the women were embarking on a “new chapter”, choosing to welcome the child and adapt their traditions with support from the Kanoe and Funai. Villa says the fact that the newborn is a boy creates the possibility of restoring male roles like hunter.

Researchers and officials who have long worked with the three women understood that protecting the territory depended on the Akuntsu’s survival as a people. They sought to avoid a repeat of what happened to Tanaru, an Indigenous man who was discovered after living alone and without contact for decades.

After the discovery, authorities struggled to protect Tanaru’s territory. After he died in 2022, non-Indigenous groups began disputing the land. Late last year, the federal government finally secured the area, turning it into a protected conservation unit.

Funai’s Wapichana says Babawru’s child “is a hope that this next generation will indeed include an Indigenous person, an Akuntsu, ensuring the continuity of this people.”

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Through years of careful work, Funai secured territorial protection for the Akuntsu and helped foster ties with the Kanoe. The agency also arranged spiritual support from an allied shaman, allowing the women to feel safe bringing new life into the world after decades of fear and loss.

The Akuntsu form emotional bonds with the forest and with the birds. Now, they are strengthening those bonds with a new human life in their world.

“What kind of relationship will this boy have with his own territory?” Aragon says. “I hope it will be the best possible, because he has everything he needs there.”

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