Nissan and Honda changed their minds to merge in the third largest automaker in the world

Negotiations between Honda Motor and Nissan Motor about the creation of a single holding, which the companies announced at the end of December, came to a standstill. According to The Wall Street Journal with reference to informed sources, the Nissan Board of Directors plans to reject the Honda proposal for the unification of two automakers. His meeting will be held on Wednesday, and, according to sources, the final decision has not yet been made.

Image source: Nissan

On December 23, 2024, Japanese automakers announced their intention to unite as part of a structure in which both companies would become subsidiaries of one holding. However, during the negotiations, Honda put forward a new proposal according to which Nissan should become her subsidiary instead of the initially agreed equal conditions. According to the source familiar with negotiations, Nissan considered this option unacceptable and plans to reject it at today’s meeting of the board of directors.

Despite the failure of the merger, Nissan and Honda will continue cooperation, including joint projects in the development of software and electric vehicles, sources said.

In connection with the failure of the plans to unite with Honda, Nissan will have to make efforts to convince creditors, employees and customers that she can survive in conditions of rigid competition in the USA and China, where she lost its former position, writes The Wall Street Journal.

Due to the difficult financial situation and the ongoing losses, Nissan announced in November last year about a reduction in 9,000 jobs, a decrease in global production capacities by 20 %, as well as the decision to reduce their share in Mitsubishi Motors from 34 %to 24 %.