In a major development in the automotive industry, Nissan ends merger talks with Honda due to disagreements over the proposed structure of the deal. Nissan’s board reportedly rejected Honda’s conditions, particularly its proposal to make Nissan a subsidiary. While a formal decision by executives is still pending, sources indicate that the discussions have effectively collapsed.
The Nissan-Honda merger talks began in late 2024, aiming to create one of the world’s largest automakers. The proposed deal was expected to enhance both companies’ global competitiveness, especially in the electric vehicle (EV) market. However, significant differences emerged over governance and control, with Nissan opposing Honda’s bid for majority ownership. This led to Nissan officially withdrawing from the negotiations, signaling the end of the potential alliance.
According to reports, Nissan ends merger talks with Honda primarily due to governance disagreements. Honda was seeking a controlling stake in the merged entity, which Nissan’s leadership found unacceptable. Nissan executives feared that losing independence would weaken its long-term strategic direction, especially as it continues its post-pandemic recovery.
Additionally, Nissan has been exploring alternative partnerships, particularly with technology firms. The automaker has reportedly initiated discussions with Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, to explore potential collaborations in EV and smart car development.
The announcement that Nissan ends merger talks with Honda has sparked varied reactions from industry analysts. While some experts believe a merger could have strengthened Japan’s automotive industry, others argue that Nissan’s decision to preserve its autonomy is a strategic move.
Renault, which holds a 36% stake in Nissan, has also been closely monitoring the situation. With the failure of the merger talks, Renault is now reportedly revisiting discussions about selling part of its stake in Nissan to potential investors, including technology firms.
Despite the breakdown of merger discussions, both Nissan and Honda are expected to continue pursuing independent growth strategies. Honda remains focused on expanding its EV lineup, while Nissan is looking to strengthen its global presence through targeted partnerships.
While the collapse of the negotiations marks the end of immediate merger prospects, analysts suggest that further industry consolidation is inevitable. With increasing competition from tech-driven companies like Tesla and BYD, traditional automakers are under pressure to form strategic alliances to stay competitive.
As Nissan ends merger talks with Honda, the focus now shifts to how both companies will navigate the evolving automotive landscape. Whether through alternative partnerships or independent expansion, Nissan and Honda will continue to play significant roles in shaping the future of mobility.
