What the Honda-Nissan Merger Could Mean for the Armada and Full-Size SUVs

When two Japanese automaking giants sat down to talk merger in late 2024, survival was only part of the story. The deal would have reshaped how Americans buy full-size SUVs, from pricing to powertrains to the very platforms these vehicles ride on. Then it all fell apart. But here’s why the story isn’t over.

• Honda and Nissan announced merger talks in December 2024 but ended negotiations in February 2025 over control disputes, though collaboration on technology continues
• Platform sharing between the companies could have reduced development costs for large SUVs like the Nissan Armada by spreading expenses across 400,000 units instead of 200,000
• Honda’s upcoming hybrid system for large vehicles, arriving by 2027, may still benefit from Nissan collaboration as both companies face pressure from Chinese automakers and tariff policies

The Deal That Almost Was

Picture this. December 2024 rolls around, and Honda CEO Toshihiro Mibe and Nissan CEO Makoto Uchida are holding a press conference in Tokyo. They’re announcing something wild: the world’s third-largest automaker might soon exist. The two companies signed a memorandum of understanding to explore a full merger through a new holding company.

The numbers looked good on paper. Combined revenue topping $190 billion. More than seven million vehicles sold annually if you threw Mitsubishi into the mix. The kind of scale that could actually compete with Toyota and Volkswagen.

But by February 13, 2025, it was over. Honda wanted control. Nissan refused to become a subsidiary. Two corporate cultures that couldn’t find common ground, despite Nissan desperately needing Honda’s financial stability.

Why Full-Size SUVs Were At The Heart Of This

Here’s what made this merger so interesting for SUV buyers. Honda doesn’t have a true full-size, body-on-frame SUV. Their Pilot is a solid midsize crossover, but it’s built on a unibody platform and can’t match the towing capacity or off-road chops of something like the Nissan Armada.

The Armada, which got redesigned for 2025 with a new twin-turbo V6 pushing 425 horsepower, sits on the same platform as the global Nissan Patrol. It’s a legitimate truck-based SUV with 8,500 pounds of towing capacity. Honda has nothing like it.

Nissan’s head of product planning, Ponz Pandikuthira, spelled it out pretty clearly at a press conference in early 2025. If you’re developing a new platform for large SUVs to replace the Pathfinder, Murano, QX60, and QX65, that’s maybe 200,000 units. But if Honda joins in and you’re also building their equivalent models, suddenly you’re developing for 400,000 units. Variable costs drop fast.

The Hybrid Wildcard

Honda announced in May 2025 that it’s developing a new hybrid powertrain specifically for large North American vehicles. The company said it would deliver “powerful driving performance, high towing capability, and high environmental performance.” Translation: they’re finally building a hybrid system that won’t neuter a full-size SUV.

This system is slated to arrive around 2027, which means a next-generation Pilot with a hybrid option makes perfect sense. But what about the Armada? Nissan has decades of electric and hybrid experience. The Leaf might not have been a sales blockbuster, but the company knows how to build battery packs and electric motors.

Even though the merger fell through, Honda and Nissan are still talking. They’re collaborating on electric vehicle technology, software-defined vehicle platforms, and hybrid systems. There’s a real possibility that Honda’s hybrid system for large vehicles could benefit from Nissan’s battery tech, or vice versa.

What This Means For Pricing

The economics of platform sharing are pretty straightforward. When you spread development costs across more vehicles, each unit gets cheaper to produce. Right now, the 2025 Armada starts around $60,000 for the base SV trim and climbs past $76,000 for the loaded Platinum Reserve.

A shared platform with Honda could have trimmed thousands off those development costs, potentially keeping future Armada prices more competitive as emissions regulations tighten and hybrid systems become necessary. The base Pilot starts around $42,000, but it’s also a smaller vehicle in a different class.

The question becomes whether Nissan can justify the investment in a next-generation Armada platform on its own. Sales of full-size SUVs are strong, but developing a new body-on-frame chassis with modern safety tech, hybrid compatibility, and software-defined features costs billions. Sharing that burden would have made the business case much easier.

The Tariff Angle Nobody’s Talking About

President Trump’s trade policies threw another variable into the mix. Both Honda and Nissan have manufacturing capacity in Mexico, which suddenly became a liability when tariffs came up in political discussions. The merger talks gained urgency because of this.

Honda’s North American plants are running at full capacity. Nissan’s aren’t. The Canton, Mississippi plant that built the now-discontinued Titan pickup also builds the Frontier and formerly the Altima. There’s room there to potentially produce Honda-badged full-size trucks or SUVs using Nissan’s body-on-frame expertise.

Honda Executive Vice President Noriya Kaihara said it plainly at CES 2025: they might need to shift production locations depending on how tariff policies shake out. Having access to Nissan’s partially idle American factories could have solved that problem overnight.

Chinese Competition Changed Everything

You can’t talk about why Honda and Nissan wanted to merge without mentioning China. BYD and other Chinese automakers dominate their home market and now they’re expanding into Europe, threatening traditional markets that Honda and Nissan have relied on for decades.

Chinese companies can build EVs cheaper. Their software is often more advanced. They’re growing fast, and they’re not slowing down. Japan recently lost its spot as the world’s largest auto exporter to China.

Honda and Nissan have watched their Chinese market share evaporate over the past few years. The merger would have given them more resources to fight back with better EVs, better software, and more competitive pricing. For a vehicle like the Armada, which competes in a segment dominated by American brands, having stronger financial backing could have meant better technology at lower prices.

Where Does The Armada Go From Here?

The 2025 Armada is genuinely impressive. Nissan took the global Patrol, gave it American-market modifications, added a twin-turbo V6 that outpunches most V8s, and created the first-ever PRO-4X trim with serious off-road hardware. The reviews have been positive.

But what happens in three years when it’s time to think about the next generation? Nissan’s financial situation is still shaky. The company announced 9,000 job cuts in late 2024 and is reducing global production capacity by 20 percent. Credit agencies aren’t optimistic.

Without Honda’s money and engineering resources, Nissan will need to find another way to fund the next Armada. That could mean badge-engineering deals with other manufacturers, more partnerships with Chinese companies like Dongfeng, or potentially letting the model fade away if the business case doesn’t work.

Nissan has said publicly that talks with Honda never really stopped. They’re exploring “individual programs” even though the full merger is off the table. A shared SUV platform still makes sense for both companies, even if they’re not sharing a corporate structure.

What Buyers Should Watch For

If you’re shopping for a full-size SUV right now, the current Armada is a strong choice. But the long-term picture gets murky. Will there be a hybrid version in a few years? Will Nissan be able to invest in the advanced driver assistance systems and software features that buyers increasingly expect? Will prices stay competitive?

Honda buyers wondering about a full-size option should keep an eye on these ongoing collaborations. A Honda-badged large SUV built on Nissan’s body-on-frame architecture could show up by the end of the decade, especially if the companies can sort out production-sharing agreements.

The bigger takeaway is that consolidation in the auto industry isn’t optional anymore. Companies that don’t find partners will struggle with the massive costs of developing electric vehicles, hybrid systems, and software platforms. Even if Honda and Nissan couldn’t agree on a full merger, they’re stuck collaborating anyway. The alternative is falling too far behind Chinese competitors who are already sharing development costs across enormous production volumes.

The Armada’s future, and the future of full-size SUVs in general, depends less on individual companies and more on how well traditional automakers can adapt to this new reality. Platform sharing, hybrid powertrains, and streamlined production are coming whether companies merge or not. The only question is whether they’ll get there fast enough to stay competitive.

Why This Story Isn’t Over

The Honda-Nissan merger might be dead, but the forces that pushed these companies toward each other aren’t going anywhere. Chinese competition, tariff pressures, and the astronomical cost of developing modern vehicles mean collaboration is the only path forward. For vehicles like the Armada, that probably means shared platforms and hybrid technology in the next generation, even if the badges stay separate. Keep watching the news. This story is far from over.