Honda, Nissan cancel merger plans
Less than two months after the announcement was made, Honda and Nissan have decided to cancel their merger plans.
According to the original plan, the merger between Honda and Nissan was set to create the world’s third-largest automotive group, following Toyota and Volkswagen.
Citing a report from Japan News, Nissan rejected Honda’s proposal to make it a wholly-owned subsidiary, causing the merger discussions to become disrupted.
In a previous announcement, both parties signed a memorandum for cooperation in electric vehicles (EVs) and several related areas, including vehicle software.
In December, Honda and Nissan announced plans to form a holding company that would oversee the operations of their respective brands.
The merger was originally intended to reduce costs and alleviate financial burdens, thus enabling both brands to compete with global players like Tesla and BYD.
Both Honda and Nissan were expected to announce the results of their discussions at the end of January; however, this was postponed to mid-February.
Despite the cancellation of the merger plans, Honda and Nissan are reportedly set to continue their strategic partnership along with Nissan’s partner, Mitsubishi.
