The essence of the merger of automobile companies is self-capacity reduction.

The automobile industry is highly scale-dependent, as competition in the automotive sector involves long product lines, and both channels and services must have global coverage. These costs are very high, so an automobile company must maintain a certain scale; otherwise, it cannot sustain the aforementioned product lines and service networks, not to mention investments in market branding and research and development.

Honda and Nissan are two companies, and it seems that Nissan was the first to be unable to hold on.

After the merger, it means the consolidation of the two service networks, but it also means the merging of vehicle models, which will inevitably lead to many cars being discontinued due to the high degree of overlap.

However, the merger is just a tactical retreat. New energy is a major trend, and it is impossible to carve out a bloody path in the new energy sector.

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