Honda and Nissan are expected to terminate their merger talks on Thursday officially. The deal, which could have created the world’s third-largest automaker, fell through after just two months of negotiations.
According to Kyodo News, Honda and Nissan will hold separate board meetings on Thursday to decide whether to end the management integration discussions that began late last year.
Honda and Nissan, Japan’s second and third-largest automakers, announced plans in December to establish a holding company by August 2026. Under the new structure, both firms would become subsidiaries.
A successful merger would have propelled the entity past Hyundai Motor Group to become the world’s third-largest automaker. The negotiations hit roadblocks due to disagreements over the merger structure.
Honda, dissatisfied with Nissan’s turnaround efforts amid its financial struggles, proposed making Nissan a subsidiary.
Nissan strongly opposed this proposal, insisting on an equal partnership. The impasse led Nissan CEO Makoto Uchida to inform Honda last week of his intention to halt merger talks.
Kyodo News reported that this historic restructuring attempt collapsed after two months due to the shift toward electric vehicles.
The report added that Nissan is discussing with Mitsubishi Motors, its largest shareholder, and other partners to continue collaboration on electric vehicle software development.
Honda and Nissan are scheduled to hold financial briefings on Thursday from April to December 2024. Industry observers keenly await explanations for the merger withdrawal and insights into the companies’ future strategies.
Yangwei Liu, chairman of Taiwan’s Foxconn, confirmed to reporters that he had contacted Nissan’s largest shareholder, Renault Group. Liu expressed interest in Nissan’s management and clarified that the purpose of the correspondence was collaboration, not acquisition.
Kyodo News also reported that Foxconn is in talks with Honda for potential electric vehicle contract manufacturing.
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