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3mo ago

Honda and Nissan End $60 Billion Merger Talks

The automakers cited structural disagreements and strategic priorities as reasons for terminating the proposed deal, while committing to ongoing collaboration on electric vehicle technology.

Logos of Nissan Motor Corporation and Honda are seen at a joint press conference on their merger talks, in Tokyo, Japan, December 23, 2024. REUTERS/Kim Kyung-Hoon/File Photo
FILE - A Nissan logo is displayed on a Nissan Pathfinder SUV at the Pittsburgh International Auto Show in Pittsburgh, Feb. 15, 2024. (AP Photo/Gene J. Puskar, File)
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Makoto Uchida, Director, Representative Executive Officer, President and CEO of Nissan Motor Corporation and Toshihiro Mibe, Director, President and Representative Executive Officer of Honda, hold a joint press conference on their merger talks, in Tokyo, Japan, December 23, 2024. REUTERS/Kim Kyung-Hoon/File Photo

Overview

  • Honda and Nissan have officially called off their merger, which would have created the world's third-largest automaker by sales volume.
  • Talks broke down after Honda proposed restructuring the deal to make Nissan a subsidiary, a move Nissan's leadership rejected over concerns about autonomy.
  • Nissan, facing financial struggles with a projected annual loss of $518 million, announced a cost-cutting plan involving 9,000 job cuts and the closure of three factories by 2026.
  • Both companies will continue their strategic partnership, focusing on electric vehicle and smart car technologies, alongside Mitsubishi Motors.
  • Taiwanese tech giant Foxconn has expressed interest in exploring partnerships with Nissan, including potentially acquiring Renault's stake in the company.