Raphael Nam
Appearances
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
Yes, these are definitely two big companies, especially in the U.S. The CR-V from Honda, for example, is one of the best-selling cars in the country. And Nissan has cars like the Rogue SUV. And the reason why these talks are happening is because of these two transformative changes you just mentioned, Sarah. Let's tackle the first one, the pivot to electric vehicles.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
Nissan and Honda have had trouble recognizing producing the kind of buzzy EVs that Tesla or South Korean automakers like Hyundai and Kia have produced. So a combination would make sense. It allows the two companies to pool their expertise and their production together. And the hope is that they will become stronger.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
It's why both companies said this week they are exploring a merger and talks have started. Although both Honda and Nissan are well-known, they're not among the very, very top players in the industry. A merger, though, would change that. It would make them the third biggest automaker in the world, behind just Toyota and Volkswagen.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
Yes, indeed. It would make them more competitive both in China and outside of China. And it's important because I think for people in the U.S., it's kind of hard to see the threat posed by Chinese automakers like BYD because the U.S. has managed to prevent them from coming in with big tariffs and other restrictions.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
But in Europe, where I'm from, you can really see how successfully Chinese companies have pivoted. to producing EVs, the future of the car industry I was telling you about. You can see it literally from the time you land at an airport, where you can see their ads everywhere. And of course, you're seeing more and more of their EVs on the roads.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
They are not only selling these EVs cheaper, their quality has improved dramatically. And they're also hyper-focused on software, which is becoming critical for cars.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
Yes, except now it's the Japanese automakers that are playing defense. But it's not just Japan. Just like the 80s, companies in the U.S. and Europe now see Chinese rivals as existential threats. Here's how Sam Abuel-Samid, an auto analyst based in Detroit, put it to me.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
So the name of the game could be size. Get bigger or get left behind. It's why analysts believe we could see more deals happening over the next few years. It may be the best way to tackle these two seismic changes taking place, the pivot to electrification and the emergence of China.
Up First from NPR
Christmas Attack In Ukraine, Honda-Nissan Merger, Nigeria's Economic Crisis
Thank you, Sarah.