Honda and Nissan confirmed the stop to the talks for the merger that would have created the third largest car manufacturer in the world for unit sales. In recent weeks Mitsubishi had already taken a parade from the negotiation. The offer to unite the forces had been seen as an attempt to reach the numbers of Tesla and the Chinese companies that predominate in the electric vehicle market, as well as providing an anchor of salvation to Nissan, in financial difficulties. With a joint note, the companies said they had terminated the Memorandum in agreement, signed on December 23, 2024, which took into consideration a commercial integration between the two companies.”It is really deplorable that both companies have not been able to reach an agreement“, he told the CEO and president of the Honda Toshihiro Mibe. The manager had insisted in December on the fact that any merger would not have been a rescue plan for Nissan, who had announced thousands of job cuts last year after having A 93% collapse reported in the net profit of the first half.
Nissan said Thursday that now An annual loss of $ 518 million is expected due to the collapse of sales. The Japanese media reported that the discussions interrupted after Honda proposed to transform the rival into difficulty into a branch instead of integrating the two brands into a new holding. The car manufacturers confirmed in the joint declaration that Honda “proposed to modify the structure from the creation of a single holding company to a structure in which Honda would be the parent company and Nissan the controlled through an exchange of shares”. The two car manufacturers will continue to look for common synergies through a partnership that also includes Mitsubishi.
After the announcement Renault, who holds about 35% of Nissan’s shares, said he was welcoming “Nissan’s intention to focus primarily on the execution of his renovation plan” Looking for long -term alternative partners, to strengthen competitiveness in the technological race, Foxconn could be an option.