Yesterday, US Senators Jeff Merkley (D-OR), Elizabeth Warren (D-MA), and Joshua Hawley (R-MO) sent letters to the heads of Ford, General Motors, and Tesla, as well as the US heads of Honda, Hyundai, Nissan, Stellantis, Subaru, Toyota, and Volkswagen, excoriating them over their opposition to the right-to-repair movement.

"We need to hit the brakes on automakers stealing your data and undermining your right-to-repair," said Senator Merkley in a statement to Ars. "Time and again, these billionaire corporations have a double standard when it comes to your privacy and security: claiming that sharing vehicle data with repair shops poses cybersecurity risks while selling consumer data themselves. Oregon has one of the strongest right-to-repair laws in the nation, and that’s why I’m working across the aisle to advance efforts nationwide that protect consumer rights."

Most repairs aren’t at dealerships

The Senators point out that 70 percent of car parts and services currently come from independent outlets, which are seen as trustworthy and providing good value for money, "while nearly all dealerships receive the worst possible rating for price."

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• Nissan and Honda are reportedly in talks to merge.
• Nissan's lack of hybrids has affected the success of popular models like the Rogue.
• Honda has seen big sales increases for popular models with hybrid offerings.

A potential tie-up between Nissan and Honda could solve one big problem for Nissan: a lack of hybrids.

That's what dealers who spoke with Business Insider said this week amid reports that the Japanese automakers are in talks to create a new global auto goliath. Nissan is one of few car manufacturers in the US without a hybrid or plug-in hybrid offering, despite taking an early lead in EV sales with the Leaf in 2010.

Green car shoppers have turned away from EVs in favor of hybrid models this year, leaving Nissan with unpopular and unprofitable battery-powered offerings in the Leaf and Ariya SUV.

Nissan dealers have dealt with slumping sales all year, particularly for the brand's top seller, the Rogue. Once a segment leader, sales of the Rogue fell 10% through the first nine months of the year compared to the same period last year, according to company data.

And dealers say they're losing customers to Honda and Toyota, which have hybrid versions of their CR-V and RAV4 SUVs.

One dealer with both Nissan and Honda stores says it's "painfully obvious" that Nissan is losing customers to brands with more hybrids. The dealer didn't want to be identified, but Business Insider confirmed his identity.

He said it has become common for a Nissan shopper to migrate to the Honda store after they realize there aren't any hybrids.

Following disappointing sales results in the first quarter, Nissan CEO Makoto Uchida acknowledged the hybrid blind spot, saying during an earnings press conference that until last year, Nissan wasn't able to predict the rapid rise in demand for hybrids. The company has said it is shifting efforts toward hybrid offerings, but dealers and automotive industry experts say that change could take years.

Meanwhile, Honda is riding the hybrid wave this year as customers gravitate toward the hybrid versions of the CR-V SUV and Civic sedan. Just this month, Honda said it has plans to double its global hybrid sales to 1.3 million vehicles by 2030, as it aims to create a "bridge" to EV adoption.

Dealer skepticism over another auto merger

While details of a potential tie-up between Nissan and Honda remain scant, some dealers are wary of yet another global auto merger. In separate statements, the companies didn't comment specifically on the reports, pointing instead to a March announcement in which they said they were exploring "various possibilities for future collaboration."

Adam Lee, a dealer in Maine with several major brands, including Nissan, Honda, and Chrylser, said he's grown cynical about promised "synergies" after experiencing several different mergers as a Chrysler dealer.

"Show me a merger where the synergies actually existed, and I'll show you something that doesn't exist," Lee said. "I'm trying to give them the benefit of the doubt, but I tend to be cynical about anything like this."

Chyrsler-owner Stellantis is in the middle of a tough transition right now, as the CEO who led the merger of Fiat Chrysler and PSA stepped down suddenly at the start of the month. Before that, Chrysler lived through a messy marriage with Germany's Daimler in the late 1990s and early 2000s.

Lee said Nissan could probably use some help with hybrids and other plug-in models but argued: "You don't necessarily need to merge to do that."

• Nissan and Honda are engaged in merger talks.
• The US is an extremely important market for both brands.
• Honda and Nissan's top sellers are their respective compact SUVs, the CR-V and Rogue.

A merger of Nissan and Honda would marry two rivals for US customers, mostly on their top-selling compact SUVs.

Honda's volume leader is the compact CR-V crossover, and Nissan's is the Rogue.

The largest market for both automakers is the US, where Honda's models typically outsell Nissan's. The CR-V, for example, has outsold the rival Rogue by more than 100,000 units this year.

Pooling resources, like many other automakers have done in recent years, could help Nissan and Honda speed up the development of new EVs while reducing production costs by using shared parts.

The companies could also help fill gaps where each is lacking.

Honda, for example, doesn't have a presence in the full-size SUV market, a highly competitive but lucrative segment, with transaction prices often reaching six figures. Nissan has long been a player with its Armada and Infiniti QX80 SUVs.

Here's a closer look at the five top-selling models in the US from Nissan and Honda:

1. Nissan Rogue

2024 Sales (through Q3): 189,156

The Rogue is Nissan's top seller, and given the popularity of the compact SUV segment, the brand's most important product. Business Insider recently reviewed the Rogue and was impressed by its punchy three-cylinder engine.

2. Nissan Sentra

2024 Sales (through Q3): 123,732

For decades, the Sentra has been one of the most popular subcompact economy cars in the US. We recently reviewed a 2024 Sentra and found it to be an attractively styled little sedan at an affordable price.

3. Nissan Altima

2024 Sales (through Q3): 86,679

The midsize Altima is Nissan's answer to the Honda Accord, Toyota Camry, and Hyundai Sonata. Despite its relatively strong sales, Nissan reportedly plans to end production of the Altima after 2026.

4. Nissan Pathfinder

2024 Sales (through Q3): 58,896

The Pathfinder has been a staple of Nissan's SUV lineup since its launch back in 1986. The current fifth-generation Pathfinder SUV launched in 2022.

5. Nissan Frontier

2024 Sales (through Q3): 54,257

The Frontier is one of the most popular midsize pickups on sale today. The current third generation launched in 2022.

1. Honda CR-V

2024 Sales (through Q3): 298,164

The CR-V has been Honda's best-selling model in the US since 2017. We recently reviewed a 2025 CR-V Hybrid and found it to be one of the best small SUVs on sale today.

2. Honda Civic

2024 Sales (through Q3): 188,422

The compact Civic is one of the models that helped Honda establish itself as an automaker more than 40 years ago.

3. Honda Accord

2024 Sales (through Q3): 124,689

Until the rise of SUVs in the last decade, the Accord held the mantle as Honda's top seller. In fact, the Accord was the last vehicle to dethrone the mighty Toyota Camry as America's best selling car more than two decades ago.

4. Honda HR-V

2024 Sales (through Q3): 114,805

The subcompact HR-V is Honda's smallest and most affordable SUV, competing directly against the Nissan Kicks and Toyota Corolla Cross.

5. Honda Pilot

2024 Sales (through Q3): 103,115

The Honda Pilot is one of the most popular family SUVs on sale today. We recently reviewed a 2025 Pilot Elite and came away impressed by its smooth V6 engine, smartly designed cabin, and superb quality.

• Three of Japan's iconic car companies are struggling.
• Toyota, Honda, and Nissan have seen sales in China slump, and now Nissan and Honda are considering merging.
• Japanese automakers, which have prioritized hybrids, are facing pressure from China's EV giants like BYD.

Japan's iconic auto industry is going through a rough patch, and now two of its most important companies are considering merging as they fight for survival.

Nissan and Honda are set to negotiate a possible merger, according to multiple reports on Tuesday, as they mull combining forces to stave off the growing threat of Tesla and China's electric vehicle makers.

It comes after the two companies and major rival Toyota reported slumping profits in their most recent earnings, as they grapple with ferocious competition in China and a bumpy transition to electric vehicles.

Nissan announced it would cut 9,000 workers amid falling sales, while Honda reported a 15% drop in operating profit in the second quarter.

Toyota, the world's largest automaker, saw profits for the quarter ending in September drop to 573.7 billion yen ($3.7 billion), down from nearly 1.28 trillion yen ($8.3 billion) over the same period last year.

All three companies face a similar problem; they are failing to sell enough cars in China.

Toyota's sales in China were down just over 10% in the first nine months of the year, with the company blaming "severe market conditions" such as "intensifying price competition."

Still, a Toyota spokesperson told Business Insider that its declining profits were not only attributable to China; it also saw weakness in Japan and North America.

Honda flagged a decline in sales in China in its most recent quarter, dragging down its total group sales. While Nissan reported a drop of over 5% in retail sales in China in the first half of the fiscal year — the largest drop of any of its regions.

Like other foreign automakers, Japan's car giants are being squeezed in China by local rivals. These rivals have rapidly gained market share by offering a range of affordable but high-tech EVs and hybrids.

BYD, Zeekr, and Nio have reported bumper sales recently, as European automakers like Mercedes-Benz and BMW are being squeezed in this region.

Many of China's EV champions are now expanding overseas, something Felipe Munoz, auto analyst at JATO Dynamics, told BI was putting the likes of Toyota and Honda under growing pressure.

"The real battle is happening in the emerging markets. And that's exactly where the Japanese car makers are suffering the most," said Munoz, pointing to the rapid expansion of the likes of BYD in Southeast Asia and Latin America.

"Japanese carmakers have a strong presence in Southeast Asia. And Southeast Asia right now is a hot market for Chinese cars," he said.

Electric woes

Japanese automakers have taken a broadly cautious approach to the transition to EVs, focusing instead on hybrid vehicles.

That approach has mostly paid off as EV demand has slowed, with Toyota reporting bumper profits on the back of strong hybrid sales in the US earlier this year.

However, Munoz said that while the hybrids-first strategy may have worked out in the US and Europe, it has created problems for Japanese automakers in China, leaving them without a strong lineup of EVs that can compete with local offerings that can cost less than $10,000.

"China is definitely shifting to fully electric. And this leaves out all of the car makers that are not competitive with their electric cars," said Munoz.

He added that Toyota, Honda, and Nissan are at risk of becoming overly dependent on US and European markets, which are experiencing stagnating growth while losing out in expanding markets like China.

"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," he added.

There are signs that Japan's auto giants are changing their strategies.

Nissan has pledged to accelerate the introduction of new EVs in China and hybrids in the US, while Toyota is reportedly planning to expand production in China as it attempts to take on local firms.

A Nissan spokesperson told BI that the company is taking measures to meet the market's and customers' needs, including introducing new products.

They added that the US remains a priority market for Nissan, and that the company was expecting an increase in sales from new models.

Shares of the carmaker jumped after news of the potential merger with Honda broke, rising as much as 24% in early trading on Wednesday. Nissan's shares are down nearly 25% this year.

Japanese automakers will likely face new challenges in the coming years, especially in the wake of Donald Trump winning the US presidential election.

Speaking on an earnings call in November, Honda executive vice president Shinji Aoyama warned that Trump's proposed tariffs on vehicles imported from Mexico could have a huge impact on Japanese automakers, many of whom have factories in the country.

Honda did not respond to a request for comment, sent outside normal working hours.

• Nissan and Honda are considering a merger to help them compete in the EV industry.
• The news sent Nissan stocks skyrocketing by as much as 24% in early trading on Wednesday local time.
• The Japanese car companies are struggling with slumping profits and stock prices.

Honda and Nissan are set to negotiate a possible merger that could see the two Japanese car heavyweights strengthen their existing ties and increase their collective power locally and globally.

Japanese newspaper Nikkei reported news of the possible merger on Tuesday, adding that the two car companies are hoping their combined resources will help both compete against Tesla and Chinese electric vehicle makers.

The two companies are in talks to set up an umbrella holding company to facilitate a merger, Reuters reported on Tuesday, citing a person with knowledge of the discussions.

"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," a spokesperson for Honda said in a statement to Business Insider on Tuesday.

"We will inform our stakeholders of any updates at an appropriate time," the statement added.

The merger could also include another automaker: Mitsubishi Motors, Bloomberg reported on Tuesday, citing people familiar with the matter. Nissan is Mitsubishi's largest shareholder.

"The contents of the report is not something that has been announced by our company. Nothing has been decided at the moment," Mitsubishi said in a statement to BI.

On Wednesday, Bloomberg reported that the parent company of Taiwanese tech giant Foxconn had approached Nissan to take a controlling stake in the automaker.

Representatives for Nissan and Foxconn did not immediately respond to BI's request for comment.

The news sent Nissan stocks skyrocketing. The company's shares were nearly 24% higher when local markets closed on Wednesday.

The stock's uptick follows a particularly difficult year for the car company. Amid falling profits and decreased sales, Nissan slashed its workforce by 9,000 jobs globally in November in an effort to reduce costs. Nissan's shares are down nearly 25% this year.

The potential consolidation comes after Honda and Nissan agreed to collaborate on EV batteries and software earlier this year.

During Nissan's November earnings call, CEO Makoto Uchida acknowledged that the company had fallen behind, saying the automaker needed to strengthen its competitiveness.

"There are limits if we are to do that alone. So, that had triggered us to engage in partnership with Honda," Uchida said on the call.

Honda investors, however, seemed less thrilled by the news.

The company's shares closed 3% lower on Wednesday. Honda's stock is down by over 15% this year.

December 18, 12:15 a.m. — This story has been updated with statements from Honda and Mitsubishi Motors.

• I recently drove the Honda Pilot and Hyundai Palisade midsize, three-row family SUVs.
• The Palisade delivers a refined experience with top-notch tech content worthy of a luxury brand.
• The Pilot's smartly designed cabin, easy-to-use tech, and superb quality are great for families.

American consumers purchase more than 2 million midsize family SUVs every year.

It's a broad segment in which brands can take vastly different approaches.

I recently had the chance to drive two popular three-row midsize SUVs, the Honda Pilot and Hyundai Palisade, that found success by appealing to the needs of different families.

The Honda Pilot is a thoroughly practical family hauler with a smooth V6 engine, easy-to-use tech, and a thoughtfully designed cabin that provides loads of space for people and cargo.

The Hyundai Palisade, on the other hand, delivers effective daily transportation with a luxurious flair rarely found in a mass-market family SUV.

Here's a closer look at how the two stack up against one another.

Which is a better deal?

The base front-wheel-drive Pilot Sport starts at $39,900, while the entry-level, front-wheel-drive Palisade SE starts at $36,650.

My well-equipped, Alabama-built Pilot Elite AWD test car started at $52,780 with an as-tested price of $54,630, while my loaded Hyundai Palisade Calligraphy AWD starts at $52,100. With fees, the Ulsan, South Korea-built SUV's as-tested price is $53,650.

Which one looks better?

The Pilot's blunted, truck-like front end looks great, but the Palisade's parametric jewel-style front grille takes the cake for me. It's a front facia that's both futuristic and elegant.

Which one is larger?

The Honda Pilot is one of the largest SUVs in its class. At 200 inches, my test car is about three and a half inches longer than the Hyundai Palisade.

It's also taller and wider than the Palisade.

The battle of the V6s

While many of their contemporaries have turned to small, turbocharged four-cylinder engines for motivation, the Pilot and Palisade are both powered by smooth, naturally aspirated V6s.

The Palisade's 3.8-liter V6 produces 291 horsepower and 262 lb-ft of torque. It's paired with an 8-speed automatic transmission.

The Pilot is powered by a 3.5 liter, 285 horsepower V6 with 262 lb-ft of torque paired with a 10-speed automatic transmission.

To help save fuel, both engines are equipped with the universally loathed automatic stop-start system, while the Honda engine can also shut down three of its six cylinders when high power output isn't needed.

The EPA rates both vehicles for 19 mpg city and 21 mpg combined driving. However, the Pilot gets 25 mpg of fuel economy on the highway, one more than the Palisade.

Which has a better all-wheel-drive system?

The Pilot and Palisade are both naturally front-wheel-drive crossover SUVs with all-wheel-drive available as an optional extra.

Honda's i-VTM4 and Hyundai's HTRAC systems both operate in front-wheel drive when cruising, sending power to the back only when it detects traction loss.

What sets Honda's system apart is that it can target how much power each of the rear wheels receives, such as distributing more power to the outside rear wheel in a corner to reduce understeer and improve controllability.

Which is better to drive?

Neither vehicle is particularly sporty to drive. The Pilot and Palisade lack the instant low-end torque of a turbocharged powerplant or an electric motor. The duo is also saddled with transmissions tuned for efficiency over outright performance.

Even though both models returned identical 0 to 60 mph runs of 6.9 seconds in Motor Trend's testing, the Palisade inched ahead of the Pilot in this department as it provided a more refined and pleasant driving experience.

The Palisade's drivetrain delivered power effortlessly, while it felt like the Pilot's engine and transmission combo had to strain a bit to get the vehicle going.

Which has a nicer cabin?

While both the Pilot and Palisade feature spacious, smartly designed cabins with high-quality materials and excellent ergonomics, they were executed in very different ways.

The Palisade's cabin is stylish and refined. It stands out for its quiet, isolating ride, design features like the airplane seat-style wing-out headrests, and creature comforts like the massaging ergo-motion driver seat.

The Pilot shines for its practicality and thoughtful touches, which help it excel at hauling people and their stuff. One such touch is the ingenious removable middle seat module, which can quickly transform the second-row captain's chairs into bench seats to accommodate extra passengers.

Which has more passenger space?

The Pilot and Palisade have two of the roomiest passenger cabins in the segment.

The Palisade offers about an inch and a half more second-row legroom compared to the Pilot, but it trails the Pilot by an inch in third-row legroom.

Which has the best tech?

The Pilot's standard seven-inch and optional nine-inch displays are verging on unacceptably small for a vehicle in this segment. Especially when compared to the Palisade's standard 12.3-inch infotainment touchscreen.

Both systems are well-sorted, easy to use, and backed up by physical switches to help make use on the go a bit easier. However, I found the Hyundai system to be a bit more intuitive to use.

Apple CarPlay and Android Auto compatibility come standard on both vehicles.

Both vehicles also come with an intercom system that allows the driver and rear cabin passengers to communicate through the SUVs' speakers.

How much cargo can they haul?

The Honda Pilot is ahead of the Palisade in overall cargo space, with up to 112.1 cubic feet of cargo space behind the first row versus 86.4 cubic feet for the Palisade.

My Verdict: It's a tie.

The Honda Pilot and Hyundai Palisade represent excellence in the genre but through very different means.

The Palisade's level of luxury and refinement is truly noteworthy. I wouldn't feel cheated if Hyundai slapped and Genesis badge on it and jacked up the price by $10,000.

On the other hand, the Pilot's quality and thoughtful execution are the mark of a brand with a quarter century of experience building minivans that can withstand years of grueling school runs and the destructiveness of a bored, curious child.

Given their vastly different personalities, the vehicle I'd choose depends purely on my family's changing needs.

With younger children, I'd choose the Pilot's roomy, easy-to-use, and durable cabin. But as they and I grow older, count me in on the Palisade's refined, isolating ride and heated massaging seats.

Honda Motor Co. will stop funding a joint venture with General Motors and Cruise to launch a robotaxi service in Japan, now that GM has pulled the plug on Cruise and its commercial robotaxi ambitions, reports The Nikkei. GM said Tuesday it would cease funding Cruise and instead absorb the company and combine it with […]

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