Automotive
Nissan, Honda scrap $60B merger talks amid growing tensions

Quick Hit:
Nissan is reportedly abandoning merger talks with Honda, scrapping a $60 billion deal that would have created the world’s third-largest automaker. The collapse raises questions about Nissan’s turnaround strategy as it faces challenges from electric vehicle competitors and potential U.S. tariffs.
Key Details:
- Nissan shares dropped over 4% following the news, while Honda’s stock surged more than 8%, signaling investor relief.
- Honda reportedly proposed making Nissan a subsidiary, a move Nissan rejected as it was initially framed as a merger of equals.
- Nissan is struggling with financial challenges and the transition to EVs, still reeling from the 2018 scandal involving former chairman Carlos Ghosn.
Diving Deeper:
Merger talks between Nissan and Honda have collapsed, according to sources, after months of negotiations to form an auto giant capable of competing with Chinese EV makers like BYD. The proposed deal, valued at over $60 billion, would have created the world’s third-largest automaker. However, differences in strategy and control ultimately derailed the discussions.
Reports indicate that Honda, Japan’s second-largest automaker, wanted Nissan to become a subsidiary rather than an equal merger partner. Nissan balked at the idea, leading to the collapse of negotiations. Honda’s market valuation of approximately $51.9 billion dwarfs Nissan’s, which may have fueled concerns about control. The failure of talks sent Nissan’s stock tumbling more than 4% in Tokyo, while Honda’s shares rose over 8%, reflecting investor confidence in Honda’s independent strategy.
Nissan, already in the midst of a turnaround plan involving 9,000 job cuts and a 20% reduction in global capacity, now faces mounting pressure to restructure on its own. Analysts warn that the failed merger raises uncertainty about Nissan’s ability to compete in an industry rapidly shifting toward EVs. “Investors may get concerned about Nissan’s future [and] turnaround,” Morningstar analyst Vincent Sun said.
Complicating matters further, Nissan faces heightened risks from U.S. tariffs under President Donald Trump’s trade policies. Potential tariffs on vehicles manufactured in Mexico could hit Nissan harder than competitors like Honda and Toyota. The stalled deal also impacts Nissan’s existing alliance with Renault, which had expressed openness to the merger. Renault holds a 36% stake in Nissan, including 18.7% through a French trust.
While both Nissan and Honda have stated they will finalize a direction by mid-February, the collapse of this deal signals deep divisions in Japan’s auto industry. With Nissan’s financial struggles and the growing dominance of Chinese EV makers, the company must now navigate an increasingly challenging market without external support.
Automotive
Governments continue to support irrational ‘electric vehicle’ policies

From the Fraser Institute
Another day, another electric vehicle (EV) fantasy failure. The Quebec government is “pulling the plug” on its relationship with the Northvolt EV battery company (which is now bankrupt), and will try to recoup some of its $270 million loss on the project. Quebec’s “investment” was in support of a planned $7 billion “megaproject” battery manufacturing facility on Montreal’s South Shore. (As an aside, what normal people would call gambling with taxpayer money, governments call “investments.” But that’s another story.)
Anyway, for those who have not followed this latest EV-burn out, back in September 2023, the Legault government announced plans to “invest” $510 million in the project, which was to be located in Saint-Basile-le-Grand and McMasterville. The government subsequently granted Northvolt a $240 million loan guarantee to buy the land for the plant, then injected another $270 million directly into Northvolt. According to the Financial Post, “Quebec has lost $270 million on its equity investment… but still had a senior secured loan tied to the land acquired to build the plant, which totals nearly $260 million with interest and fees.” In other words, Quebec taxpayers lost big.
But Northvolt is just the latest in a litany of failure by Canadian governments and their dreams of an EV future free of dreaded fossil fuels. I know, politicians say that it’s a battle against climate change, but that’s silly. Canada is such a small emitter of greenhouse gases that nothing it could do, including shutting down the entire national economy, would significantly alter the trajectory of the climate. Anything Canada might achieve would be cancelled out by economic growth in China in a matter of weeks.
So back to the litany of failed or failing EV-dream projects. To date (from about 2020) it goes like this: Ford (2024), Umicore battery (2024), Honda (2025),General Motors CAMI (2025), Lion Electric (2025), Northvolt (2025). And this does not count projects still limping along after major setbacks such as Stellantis and Volkswagen.
One has to wonder how many tombstones of dead EV fantasy projects will be needed before Canada’s climate-obsessed governments get a clue: people are not playing. Car buyers are not snapping up these vehicles as government predicted; the technologies and manufacturing ability are not showing up as government predicted; declining cost curves are not showing up as government predicted; taxpayer-subsidized projects keep dying; the U.S. market for Canada’s EV tech that government predicted has been Trumped out of existence (e.g. the Trump administration has scrapped EV mandates and federal subsidies for EV purchases); and government is taking the money for all these failed predictions from Canadian workers who can’t afford EVs. It really is a policy travesty.
And yet, like a bad dream, Canada’s governments (including the Carney government) are still backing an irrational policy to force EVs into the marketplace. For example, Ottawa stills mandates that all new light-duty vehicle sales be EVs by 2035. This despite Canadian automakers earnest pleas for the government to scrap the mandate.
Canada’s EV policy is quickly coming to resemble something out of dysfunctional-heroic fiction. We are the Don Quixotes, tilting futilely at EV windmills, and Captain Ahabs, trying to slay the dreaded white whale of fossil-fuelled transportation with our EV harpoons. Really, isn’t it time governments took a look at reality and cut their losses? Canada’s taxpayers would surely appreciate the break.
Automotive
Big Auto Wants Your Data. Trump and Congress Aren’t Having It.

From the Daily Caller News Foundation
Congress is not going to allow Big Auto to sideline consumer privacy and safety while getting subsidized massively by the federal government.
That is because, in late September, by an overwhelming vote of 50 to 1, Chairman Brett Guthrie’s (R-KY) House Energy & Commerce Committee joined the Senate Commerce, Science, and Transportation Committee in passing the AM Radio for Every Vehicle Act.
This legislation is in response to some automakers removing AM radios from new model vehicles despite pleas from America’s public safety community not to do so.
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“They’d rather force consumers to use their infotainment devices — which collect and sell their third-party data — than protect American lives,” Corey Lewandowski, President Trump’s 2016 campaign manager and senior adviser to his 2020 and 2024 campaigns, stated.
The entirety of America’s public safety community spanning the federal, state, and local levels, insists AM radio remaining in cars is critical for protecting the nation’s emergency alerting systems. These systems rely heavily upon AM radio, the only communication method that has stayed reliably accessible during many disasters such as the Sept.11 terrorist attack and major disasters like Hurricanes Katrina, Sandy, and most recently, Helene.
Brendan Carr, the current chairman of President Trump’s FCC, nominated by President Trump, has also endorsed the AM Radio for Every Vehicle Act. In a statement, Carr said that “millions of Americans depend on the value of AM radio and the local news that AM broadcasters offer in communities across the country.” He also recounted hearing firsthand stories of Hurricane Helene victims who “could only access lifesaving information in the days following the storm by tuning into their AM radios.”
AM radio also serves another purpose that the elites in Silicon Valley and Detroit often forget: it keeps rural and working-class America connected. Millions of people outside the big cities rely on AM for local news, farm reports, weather alerts, and even community events. For many small towns, AM stations are a lifeline—far more reliable than expensive streaming services or spotty cell coverage. Pulling it out of cars is yet another way of telling Middle America: “you don’t matter.”
Of course, no good idea in Washington is safe from special interests.
Despite the broad support within Congress, the administration, and throughout the public safety and first responder communities, the bill has faced a full-court press by the musicFIRST Coalition — a group backed by the Recording Industry of America — to tank the legislation unless it is tied to unrelated music royalty reform legislation. That’s cronyism politics at its worst—holding public safety hostage to squeeze out another payday.
However, now that the AM Radio for Every Vehicle Act has passed both committees by overwhelming margins, the only stop left for the legislation is the House and Senate Floor — meaning Speaker Mike Johnson (R-LA) and House Majority Leader John Thune (R-SD) must call it up for a roll call vote.
At the heart of this fight is more than just whether a radio dial stays in your dashboard. It’s about whether Americans can trust that their safety won’t be sacrificed for corporate profit.
It’s also about data privacy. Automakers and Big Tech are eager to funnel drivers into infotainment systems that monitor every move, harvest personal information, and sell it to the highest bidder. AM radio doesn’t spy on you. It doesn’t crash when the grid goes down. It doesn’t put profit ahead of people. It just works.
For the sake of both public safety and personal freedom, Congress should make sure it stays that way.
Ken Blackwell (@KenBlackwell) is an adviser to the Family Research Council and a chair at the America First Policy Institute. He is a former Mayor of Cincinnati, Ohio, Ohio Treasurer and Secretary of State, and U.S. Ambassador to the United Nations Human Rights Commission. He is also a former member of the Trump transition team.
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