Honda and Nissan have officially canceled their merger plans after negotiations collapsed, Nissan announced in a statement on Thursday. The two companies, along with Mitsubishi, agreed to terminate their memorandum of understanding (MOU) regarding a potential business integration. Instead, they will now focus on a strategic partnership centered on intelligent and electrified vehicles.
The merger talks, which began in December, fell apart due to fundamental disagreements, including Honda’s insistence that Nissan become a subsidiary, according to Kyodo News Agency. Honda had also demanded that Nissan demonstrate stronger turnaround efforts before any acquisition. Nissan, already struggling with financial difficulties, had announced plans in November to cut 9,000 jobs globally and reduce production capacity by 20%. However, Honda remained unconvinced of Nissan’s recovery prospects.
Had the merger proceeded, it would have created the world’s third-largest automaker by volume. Despite the failed talks, both companies remain committed to collaboration in the evolving automotive landscape.
