Honda and Nissan Merger: A PESTLE and SWOT Look at Their Strategy and Risks

PESTLE Analysis Implications

Honda

• Political factors:
  • The merger might ease concerns over trade tensions, especially with the U.S. and China, by pooling resources to counter Chinese EV dominance.
  • Regulatory hurdles in countries where both companies operate may increase due to antitrust concerns.
• Economic:
  • Improved economies of scale could lower production costs and enhance competitiveness against Chinese EV makers.
  • Reliance on the Chinese market remains a vulnerability amid potential downturns.

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