The Detroit Three are facing an auto industry increasingly affected by the rise of China as demonstrated by the planned merger of Honda and Nissan.

Japanese automakers Honda and Nissan will attempt to merge and create the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

Shares of Nissan (NSANY, 7201.T) tumbled on concerns about its deal with Honda (HMC, 7267.T), which isn't expected to close until 2026. One of the concerns is the starting ratio. According to Nikkei analysis,