Nissan and Honda merger talks hit a brick wall – report
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Nissan has reportedly told Honda it no longer wishes to discuss a merger, with an official decision expected next week.
Merger talks between Japan’s Nissan and Honda have reportedly unravelled after differences between the two companies emerged.
Nissan has stepped back from discussions of a merger with Honda – which would see the formation of the world’s third-largest automotive group – after the latter suggested Nissan become a subsidiary rather than forming a joint holding company, Reuters reported.
Makoto Uchida, the chief executive officer of Nissan, travelled from Yokohama to Tokyo to meet with Honda CEO Toshihiro Mibe on Thursday February 6, 2025, to discuss Nissan’s intention to end the merger talks, according to the report.
MORE: Nissan to reject offer to become a Honda subsidiary as merger talks slow – report
Nissan and Honda released a joint statement to their investors earlier this week, claiming the information in media reports was not announced by the companies, with official details to be released in mid-February.
Both carmakers are due to announce their financial results for the third quarter of the 2025 Japanese fiscal year next week, with a decision on the merger likely to be announced then.
“There was some media coverage… regarding the integration of management between [Nissan and Honda], which we have been discussing and considering,” the investor statement said.
“Based on the memorandum of understanding signed on December 23 last year, Nissan and [Honda] are in the stage of advancing various discussions, including the contents of the report, and we plan to establish a direction and make an announcement around mid-February.”
MORE: Mitsubishi to sit out Nissan and Honda merger – report
Nissan is said to be looking for a new corporate partner following the rumoured breakdown in its merger talks with Nissan, Reuters said.
This includes Foxconn – the Taiwanese electronics company known for its Apple iPhone manufacturing contract – which is seen as one candidate after it approached Nissan in December 2024 for a partnership deal, before merger talks between Honda and Nissan were officially announced.
Honda’s financial position is approximately five times larger than Nissan, with the company reportedly concerned about Nissan’s turnaround actions after it entered ’emergency mode’ in late 2024 with declining revenue and fewer new-vehicle sales.
“Honda was in a rush and wanted to get things done quickly,” one insider told Automotive News.
MORE: Honda wants Nissan to buy out Renault's shares ahead of merger – report
After news of the potential rift between Honda and Nissan emerged this week, the former’s shares rose by more than 8 per cent while the latter’s fell more than 4 per cent on the Tokyo Stock Exchange.
Reuters reports another roadblock in the proposed Honda-Nissan merger is potential tariffs on Mexico from U.S. President Donald Trump, where Nissan would be affected more than Honda as it exports a higher number of vehicles from Mexico to the United States.
President Trump announced on Monday February 3, 2025, the introduction of tariffs on Mexico and Canada will be paused for 30 days as negotiations continue.
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