Honda and Nissan End Merger Talks, Citing Market Volatility

The Japanese automakers abandoned plans to form the world's third-largest carmaker, opting instead to focus on a strategic partnership in electric vehicles.

Honda and Nissan officially announced the termination of merger discussions that began in December 2024, citing the need for faster decision-making in a volatile market.
The proposed merger would have created the third-largest global automaker, combining Honda's strength and Nissan's recovery efforts in the electric vehicle sector.
Honda's proposal to make Nissan a subsidiary, leveraging its stronger financial position, was rejected by Nissan, which sought to maintain its independence.
Nissan, struggling with significant debt and declining sales, viewed the merger as a potential lifeline, while Honda insisted on structural reforms before any deeper collaboration.
Both companies plan to continue a strategic partnership focused on electric and intelligent vehicle technologies, along with Mitsubishi Motors, which joined the initiative in 2024.