It sounds like a Christmas miracle: Honda and Nissan, two icons of the Japanese automotive world, are on the verge of securing their crisis-stricken future in a merger. But is this "rescue" really the game-changer the industry needs, or just a stopgap solution?

A deal could be announced as early as Monday, and the tension is rising. After years of chaos at Nissan — from the rescue by Renault to the spectacular arrest of the former hero Carlos Ghosn, and to financial problems — the former giant finally seems to have found a new partner. And at a time when the alternatives are becoming increasingly unattractive.

Nissan's Desperate Fight for Survival

Despite Appearances — Japan's Auto Industry Is Not Collapsing. Toyota, the giant of the industry, has dominated the top of the global automotive market for the past four years. With its focus on hybrids while other manufacturers opted for fully electric vehicles, the strategy is proving increasingly forward-thinking — especially in the USA, where the political landscape could once again turn against EV subsidies.

But Nissan? A different picture. The company is burning money, has billions in debt, and is struggling with an increasingly risky market. Especially the reliance on the Chinese market has proven to be an Achilles' heel — a lesson that Honda also had to learn painfully. The long-standing alliance with Renault — always a problematic partnership — is little more than a reminder of better times.

Why Honda is the Next Logical Step

An alliance with Honda, Japan's proudly independent manufacturer, could be Nissan's last chance. The alternatives? No better. Reports of a takeover interest from Foxconn, the Taiwanese electronics giant, caused a stir. But Foxconn has little experience in the automotive industry and a mixed track record with previous investments like Sharp, which is struggling after major losses and a fallen stock.

A merger with Honda could finally create two poles in Japan's automotive industry: Toyota on one side, and the new Honda-Nissan alliance on the other. Mitsubishi, already part of Nissan's current alliance, would likely be integrated and further strengthen the new giant.

The Hurdles of a Forced Marriage

Of course, not everything is rosy. Japan's tradition of so-called "face-saving mergers" could become a stumbling block here. If Nissan, the weaker partner, is placed on equal footing with Honda, power struggles and inefficient structures may threaten.

In addition, there is a lack of synergies. The two companies use different platforms and parts — integration will require time, money, and patience. Even more serious is the fact that this merger stems from a position of weakness. To many observers, it appears to be a desperate attempt to retain control over Nissan and prevent the influence of foreign players such as Foxconn.

The Chances — Despite Everything

Despite all the criticism, both companies can benefit. Nissan, the pioneer of the first mass-produced electric car, could benefit from Honda's stable leadership. Additionally, collaboration on Afeela, Honda's ambitious EV project with Sony, would create new opportunities.

In a world where smaller players are becoming increasingly irrelevant, the merger could make the duo a global heavyweight. With an eye on the third position in the global automobile market, the new alliance — if well executed — could be a real turning point for both companies.

As with every big decision in life, however, the following applies: There is no perfect solution. Only the hope that the chosen option is the right one.