Catenaa, Wednesday, February 19, 2025- Nissan and Honda have ended negotiations for a $60 billion merger, a deal that would have created the world’s fourth-largest automaker.
The breakdown of talks leaves Nissan facing mounting challenges as Chinese competitors gain ground.
The merger discussions, first reported in December, collapsed over disagreements, particularly Honda’s proposal to make Nissan a subsidiary, sources said.
Instead, the companies will continue with an existing cooperation agreement, including Mitsubishi Motors.
Nissan, which has struggled to recover from leadership crises following Carlos Ghosn’s 2018 ouster, announced Thursday it would accelerate its restructuring plans.
The automaker slashed its full-year forecast for the third time and reported another earnings decline.
It now plans to close a plant in Thailand by June and shut two more facilities.
Honda CEO Toshihiro Mibe said the collapse of negotiations was disappointing but added that a hostile takeover of Nissan was not in the cards.
Nissan CEO Makoto Uchida signaled he would be willing to step down once the company’s turnaround takes shape.
Foxconn has expressed interest in collaborating with Nissan and even acquiring a stake, though no management-level talks have been held. Nissan’s stock has pared gains since the merger reports, reflecting investor uncertainty.
With the deal off the table, both automakers now face the challenge of adapting to an industry increasingly dominated by Chinese EV giants like BYD.
