According to media reports, the much-awaited merger talks between Japanese automakers Nissan and Honda seem to be off the table.
Nissan Chief Executive Makoto Uchida met with Honda Chief Executive Toshihiro Mibe on Thursday, 6 February as confirmed by the source, in which he reported that the company is walking away from talks. According to him, Uchida agreed to walk away after Honda demanded the company make him a subsidiary-which Nissan refused to abide, the source reported.
The merged firm would have emerged as the third-largest automobile company in the world, measured by vehicle sales. In the line of Japanese auto manufacturers, Honda is the country’s second automobile producer, ranked after Toyota as the largest while Nissan is behind Honda.
Two auto firms had in December 2024 signed a Memorandum of Understanding to study the possibility of integration under a holding company. The talks were geared towards the consolidation of their competitive advantage on the team with an industry experiencing drastic changes but, early differences on the model existed between the two parties with Honda wanting Nissan as a subsidiary.
“A consensus was reached on Nissan’s part that the negotiations cannot continue on that proposal,” Reuters quoted one source as saying.
Nissan Set to Firmify Exit from Talks
As cited by the same source, Nissan will probably confirm its exit at a board meeting.Although neither Nissan nor Honda said that in the media, both have stated that by mid-February, it will decide on a course of action.
here’s what’s next for Nissan?
Such talks’ breakdown would question Nissan’s ability to successfully drive its continuing process of restructuring alone. Nissan is going through a turnaround plan that will be achieved by eradicating 9,000 jobs and slashing its global capacity by 20%.
Shares of Nissan jumped 7.6% on Thursday afternoon following the report, but Honda shares plunged 3.5%, contrary to the movement on Wednesday.
