Honda and Nissan have announced they are calling off a $60 billion plan to merge their two companies. The pair were in talks for just over a month trying to join forces, a plan that was especially important for Nissan, since it reportedly would only survive another year due to nosediving profits. The merger could have also strategically strengthened the Japanese auto industry against rising competition from China. The merger plans included Mitsubishi, but that has also fallen apart.
Honda and Nissan cancel their proposed $60 billion merger
The Japanese automakers were hoping to strengthen their position together to compete with China, Tesla, and Toyota.
Umar Shakir is a news writer fond of the electric vehicle lifestyle and things that plug in via USB-C. He spent over 15 years in IT support before joining The Verge.
Instead, Nissan and Honda will move forward with a “strategic partnership” and collaborate on “intelligence and electrified vehicles.” In a press release, the companies say the termination happened after the CEOs “discussed and considered the surrounding market environment, the objectives of the business integration, and the management strategies and structures post-integration.”
However, sources told Reuters that talks faltered primarily due to Honda’s sudden proposal to structure the merger in a way that would make Nissan a subsidiary. Nissan apparently wanted to stand as an equal, but the company isn’t in a position of strength: its earnings were down more than 90 percent year over year in the middle of 2024, and it had cut its annual operating profit forecast by almost 70 percent. Meanwhile, Honda’s third-quarter profits year over year are up five percent.
