Honda and Nissan merger talks called off: Official
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Honda and Nissan have announced an end to their merger talks – with Mitsubishi also confirming it will remain independent – after differences emerged between Japan’s second- and third-largest carmakers.
The Honda-Nissan-Mitsubishi merger has been officially called off a little over a month after talks of business integration between the three companies were announced.
Honda and Nissan have agreed to terminate the “memorandum of understanding” (MOU) signed on Monday December 23, 2024, which outlined an intention for the two carmakers to merge to create the world’s third-largest automotive group behind Toyota and the Volkswagen Group.
Mitsubishi – which considered joining the proposed merger – has also announced it has terminated its MOU for a three-party collaboration with Honda and Nissan, after media reports stating it intended to remain an independent company emerged in late January.
MORE: Nissan, Honda, and Mitsubishi in talks to merge – Official
In a media release, Nissan confirmed reports Honda had proposed changing the structure from a joint holding company to one where Nissan would be a subsidiary with Honda as its parent company, through a share exchange.
“As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU,” the media release said.
Honda, Nissan and Mitsubishi will continue their collaboration announced in 2024 for future “intelligence and electrified” cars, which could include shared hybrid and electric powertrains, along with in-vehicle software.
MORE: Nissan to reject offer to become a Honda subsidiary as merger talks slow – report
The official cancellation was made during the release of Honda and Nissan’s financial results for the third quarter of the 2024 Japanese fiscal year on Thursday, where Honda announced a 7 per cent operating margin compared to 0.7 per cent for Nissan.
Nissan’s operating profit in the first nine months fell 87 per cent in monetary terms over the same time in 2023, with the brand revising its outlook for the entire financial year to account for “volume revision and incentive increase, partially offset by better foreign exchange”.
The brand said it expects a net loss of 80 billion yen ($AU828 million) for the 2024 Japanese financial year, with “comprehensive turnaround actions” announced to reduce costs, including 2500 global job losses and restructures at its manufacturing plants, starting in the United States and Thailand.
MORE: Is Nissan really in serious trouble?
It follows an earlier cut of 9000 jobs from Nissan’s global workforce in November 2024, when chief executive officer Makoto Uchida declared the carmaker was in “emergency mode”.
Nissan is also reportedly open to new partnerships with foreign businesses, with Taiwanese electronics company Foxconn – known for its Apple iPhone manufacturing contract – expressing an interest in collaborating with the Japanese carmaker.
In December 2024, Honda CEO Toshihiro Mibe claimed the proposed merger was “not about saving Nissan”, but said “the two companies have to be able to stand on their own feet”.
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