According to Reuters, Nissan will call off merger talks with Honda. According to sources, Honda requested that Nissan become a subsidiary, which differed from their original proposal to become a holding company. Furthermore, conversations proved tough due to growing divisions on both sides. Mitsubishi has earlier withdrawn from joint venture talks with Honda. This effectively puts on hold what would have been the world’s third-largest automotive brand.
Honda and Nissan merger talks: Explained
In late 2024, Honda and Nissan began talks to merge and establish the world’s largest manufacturer by sales. The joint holding company would have allowed the two to pool their resources to compete with Chinese EV firms and Tesla in an increasingly competitive global market.
Honda and Nissan signed an MoU in March 2024 to investigate the possibility of sharing an EV platform and developing a single electric powertrain. They then expanded their collaboration with a new MoU in August, agreeing to collaborate on the development of EVs, particularly SDVs (Software-Defined Vehicles) incorporating artificial intelligence and ADAS technology.
Nissan has a global alliance with Renault and Mitsubishi Motors. Renault, which owns 36% of Nissan, had previously expressed support for the merger with Honda. According to Autocar India, Honda has asked Nissan to buy back its interest from Renault in order to prevent an unknown third party from acquiring it during the merger, which may cause delays.
