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Nissan shares surge 22% after media reports on potential merger with Honda

Nissan Motor shares surged Wednesday following a media report that the Japanese automaker is looking to merge with Honda.

The merger, if successful, will be especially beneficial to Nissan, which had previously announced plans to slash 9,000 jobs and cut global production capacity by a fifth amid fierce competition in its major markets. Joe McCabe, the president and CEO of AutoForecast Solutions, told CNBC Wednesday that Nissan needs a "revitalization" after its relationship with Renault went sideways. Volkswagen, for instance, plans to close factories and cut thousands of jobs in Germany, while General Motors recently pulled the plug on Cruise, its self-driving robotaxi company.

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