- No Deal: The highly anticipated merger between Honda, Nissan, and Mitsubishi has officially been scrapped.
- Mitsubishi's Withdrawal: The negotiations had faltered earlier in February when Mitsubishi exited the discussions.
- Diverging Goals: Honda's shift from collaboration to aiming for a majority stakeholder position is cited as the main reason for the breakdown of talks.
- Nissan's Stance: Despite Honda's stronger financial position, Nissan is not interested in becoming a subsidiary.
- EV Plans Remain: Both companies expressed intentions to continue joint development of electric vehicles (EVs), aiming to strengthen their market presence separately.
- Market Implications: If the merger had proceeded, the newly formed entity could have become a top five global automaker, valued at an estimated $60 billion.
- Nissan's Recovery Plan: Nissan is working on a strategic plan to improve its financial health, which includes seeking new partnerships and optimizing operations.
The proposed merger between Honda and Nissan, initially seen as a way to counter the growing competition from Chinese automakers, has been abandoned. Although the two companies will pursue electric vehicle projects collaboratively, Honda's desire for a majority share turned Nissan away, pushing both brands to seek strategies for independent growth amidst shifting market dynamics.
