Honda-Nissan Merger May Be Called Off

Yesterday, Honda had proposed a plan to buy shares in Nissan to make them their subsidiary. Honda wanted to be more involved with their management, but Nissan wasn’t thrilled about that idea. Just a few hours later, it looks like Honda and Nissan may be calling off the merger entirely, according to Asahi Shimbun.

For some context, Nissan has been taking hard hits for quite awhile now. Since the arrest of ex-chairman Carlos Ghosn in 2018, the automaker had never fully recovered from the situation. Adding salt to the wound, the automaker is facing stiff competition globally, especially with Chinese EV companies. With Donald Trump’s tariffs looming in the background too, Nissan’s fate is uncertain.

Therefore, Nissan and Honda decided to form a merger, that if successful, will make them the third largest automaker worldwide.

Both automakers had originally intended a detailed announcement during the end of January, but that’s been pushed back till mid-February.

As present, the talks between the companies aren’t going as well as they hoped. According to Reuters, Nissan will hold their board meeting this Wednesday, where they will most likely turn down the offer from Honda.



Both parties declined to comment on the situation, stating that the details will be announced during the promised date of mid-February.

With Mitsubishi also being on the fence, the merger’s state is uncertain. Many reports have already predicted that Nissan is currently on life support with only 12-14 months left. If the merger is ultimately called off, what will be of the struggling automaker? They're walking a fine line between a way forward and the beginning of the end.


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Read More: Honda, Nissan postpone merger to Feb – What’s the impact?

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