Honda Motor and Nissan Motor announced on Monday that they have agreed to enter formal negotiations regarding a merger. Although the outcome remains uncertain and partly depends on whether the struggling Nissan can make progress in turning a profit, the two companies aim to complete the Trade by August 2026. Analysts question whether they have that much time. The largest direct obstacle both companies face may be the vehicle models, as neither is particularly strong in the electric vehicle sector. Honda is more focused on hybrid vehicles, unlike Nissan, which offers these models in the USA, where there has been a surge in demand for cars. Morningstar Senior Analyst Vincent Sun stated, "Both companies lack compelling electric vehicle products, and the merged entity will still face challenges in developing new electric vehicle models and technology." A standardized automotive platform will create cost synergies, but it will also require time to develop. Sun noted, "Repairing the Business may take longer than expected."