According to a report from Japanese business journal Nikkei, unnamed sources say the Nissan/Honda merger is off. The sources, who wished to remain anonymous, say Nissan will withdraw from its memorandum of understanding with Honda.
Honda proposed to take a stake in Nissan and make it a subsidiary rather than merging into a new company, which would have been the world’s third largest automaker after Toyota and Volkswagen.
It’s been speculated that the Japanese government has played a role in brokering this deal in an effort to build a Japanese hedge against the burgeoning Chinese auto industry. It’s possible Honda made this proposal of making Nissan a subsidiary, knowing Nissan would reject it, with the intention of ending merger talks. Nikkei reports that Nissan wanted a merger on equal terms and balked at the idea of becoming a subsidiary of Honda.
Honda and Nissan have made separate official statements in response to the Nikkei report. “The article is not based on information announced by Nissan. We aim to finalize our direction by mid-February and will announce it at that time,” a Nissan spokeswoman said. Honda said that it and Nissan were “currently in the process of discussing various matters, including the facts reported in the media.”
We’ll likely have more official information on the potential merger’s fate in the coming weeks, but right now, it looks like it won’t happen as originally planned. Although the merger could be dead, Honda and Nissan are still in talks to collaborate in some areas of their business, including electric vehicles.
Honda and Nissan first signed a memorandum of understanding on joint EV development back in March 2024. In August, Honda, Nissan, and Mitsubishi confirmed a joint EV development effort, and the talks of a merger began in December.
However, since then, Honda has unveiled prototypes of its first 0 Series electric vehicles – an SUV and a Saloon – at CES in January. They’re close to production-ready and are expected to launch in 2026, with production taking place at Honda’s EV Hub in Ohio. They’re in-house Honda designs to be built in a Honda factory, implying that Honda doesn’t really need Nissan’s help on EVs.
Comments
It never was a good idea.
Not so sure about the subsidiary aspect, but one thing is certain. Nissan’s CEO has rocks for brains. It’s an epidemic among CEOs these days.
To me being under honda makes more sense than a new merger name, when the “honda” brand carries so much weight
Only in the US. Nissan is bigger in Latin America and the Middle East. Honda doesn’t do much outside of East and South East Asian and N.A.
Should go – Nissan ( economy ) , Honda ( more tech ), Acura ( sport brand ), Infiniti ( luxury brand )
How does Honda have more tech? Do they have any in house EVs or hybrids? How long has Nissan done those? Honda is essentially a 2 platform company in the US where Nissan does offer Trucks, SUVs, and in house EVs where Honda doesn’t.
Honda’s hybrids are only second to Toyota in the industry. Nissan doesn’t even have a reliable hybrid technology.
Honda makes trucks, too.
Honda does “really” make a truck, the ridgeline is a poor selling car with a bed and way behind technology.
Should merge with FCA.
Nissan + Renault + FCA = 3 lefts do make a right
Wonder how many different drinks will be available in that new model “Saloon” that Honda is building? DUI might me an issue.
Reminds me of that Seinfeld episode. Mon land springs?
Reminds me of the Daimler and Chrysler “merger of equals” as described by Jürgen Schrempp, CEO of Daimler Benz.
Soon after the two companies were merged Jürgen Schrempp said it was always in his plan to have Daimler take over Chrysler. After Daimler raped and pillaged Chrysler for a while they left them for dead with a venture capital company Cerberus (the 3 headed hound of Hades). Then what was left of Chrysler got merged and merged again into Stellantis, now having only a minivan in it’s line-up.
It would have been much better for Chrysler to have gone out fighting to the death. Something that Nissan may be considering
Mitsubishi, Nissan and Honda won’t survive in Asian markets soon, while Chinese brands get more mrket share. NO future for these 03 brands …..It happened with Electronic devices and now cars are the next bet for Chineses.
Nissan may be the first victim of the EV transition disruption. So sad for one of the first movers in the EV industry, that they fumbled the ball and stopped progress.
Viva La rEVolution!