Honda’s CEO struggles to explain why the merger is happening, analysts remain skeptical, and Foxconn waits in the wings.

When asked how the upcoming merger with Nissan and Mistubishi will impact collaborations with GM, a Honda executive said they'll "remain unaffected."

The Honda-Nissan-Mitsubishi merger looks increasingly likely to happen. The tie-up could save Nissan, which is experiencing severe financial troubles. Creating a giant Japanese automotive holding company would create an entity that’s more globally competitive than the companies’ current positions.

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.

Honda and the financially troubled Nissan have announced plans to merge, with Mitsubishi Motors expected to decide on its participation within the month. While speculation suggests the Honda-Nissan merger talks aim to prevent Foxconn from gaining involvement with Nissan,

A merger between Honda and Nissan appears to be almost certain, but the former brand's CEO has been tight-lipped on the benefits of the deal.

The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

This merger could create the world’s third-largest automaker, with combined resources to dominate the EV market. Honda and Nissan hope to outpace rising Chinese brands like BYD and Nio.

The potential deal would create a $50 billion company that would be the world’s third-largest automaker by sales volume, behind only Toyota and VW Group.

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.