Honda and Nissan announced on February 13 that they are halting their merger discussions, ending the basic agreement signed in December which aimed to integrate their management structures. The planned merger, which could have established one of the world’s top three automaker groups, collapsed merely a month and a half after the discussions began. Both companies emphasized that swift decision-making and efficient management were critical in the increasingly competitive and volatile automotive market, particularly as the industry shifts towards electrification.
At a press conference, Nissan President Makoto Uchida explained that the objective behind the merger was to build a stronger, globally competitive entity. However, issues arose when Honda proposed that Nissan become a wholly owned subsidiary—a proposal Uchida could not accept, fearing it might restrict Nissan’s ability to safeguard its market position and fully capitalize on its potential. Concurrently, Honda's representative highlighted the importance of a unified governance system for rapid decision-making, while firmly dismissing any implications of a hostile takeover.
Amidst the termination of the merger talks, both companies confirmed that their collaboration would persist in the realm of technology. They expressed confidence that this continued alliance would allow them to achieve certain economies of scale and foster new value through efficient synergies, even though a full business integration was off the table.