Nissan will reportedly call off talks for a merger with Honda as the two Japanese carmakers could not reach a consensus on the terms of the merger deal, Reuters wrote citing a Nikkei report.
Honda had sounded out Nissan about becoming a subsidiary, Reuters cited one of its sources as saying, however this would have not been in the spirit of the original discussions for a merger of equals; Honda was increasingly concerned about Nissan’s plans to turn around its fortunes.
Meanwhile, Nissan also has a larger risk exposure to the US-Mexico tariffs compared to compatriots Honda and Toyota, Reuters cited analyst Vincent Sun as saying.
The merger of the two Japanese carmakers was valued at more than US$60 billion (RM265 billion), Reuters wrote, and if materialised, would have created the third-largest carmaker by sales, however Nissan’s struggles continued as it announced it is to cut 9,000 jobs and reduce production capacity by 20%.
Earlier, a report yesterday by Kyodo News wrote that Nissan and Honda were still discussing the finer details of the proposed merger, following a press conference last month stating that the two carmakers agreed to begin talks of merging under a new holding company in 2026.
The two carmakers signed a memorandum of understanding (MoU) in December 2024 to explore the possibility of a merger that would lead to the establishing of the aforementioned joint holding company, with Mitsubishi having reached a basic agreement to become a third member of the alliance.
Nissan and Honda initially had the aim of arriving at a definitive agreement by June this year, while reports emerged last month that Mitsubishi might not take part in the merger.
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The truth is Honda call the shots.
Why should a company like Protong,dictate Geely?
So Tan Chong can breathe a sigh of relief,but better they just give up the “bleeding” adventure,get a China EV and start afresh.Just rebadge all the showrooms.
Do u need AI or rocket science?
Is one good passive (Nissan as Subsidiary) way Honda say “NO”
This deal will never happen because Nissan’s old boys, as Ghosn called them, wanted equal power to Honda’s executives. Nissan, a desperate company worth only 1/5 of Honda wants to be equal in the merger, just let that sink in. April’s Fools is still 2 months away, Nissan.
actually ghosn was the main issue. he was selling subpar renaults with nissan badges which helped increase profits but it was a slow but costly damage to nissans credibility. many who owned a modern nissan would no longer buy another one anymore.
Why Ghosn needed to do that? Because Nissan was neae bankrupt from the mismanagement of-surprise, surprise- the old boys. You forgot that Datsun/Nissan was in deeper sh*t than now when they were rescued by Renault?
Nissan’s terrible reliability reputation (especially in the US) has nothing to do with Renault. Their Jatco CVT is the main bone of contention. It’s been known for years that Nissans do not come with adequate transmission fluid cooling. Mitsubishi uses a similar Jatco CVT transmission for their product lines and they don’t have the same issue.
Conversely, it was the Renaults equipped with Nissan powertrains that get afflicted with the same CVT issues. Perhaps Ghosn couldn’t do anything about it as he can’t separate Nissan away from a major Japanese vendor. To force Nissan to adopt the same AMTs and DCTs as Renault vehicles would have resulted in him being ousted sooner.
Is Nissan’s lost if it fails to merge with Honda , it doesn’t affect Honda in anyway. Honda has nothing to lose, while Nissan has everything to lose
RIP Nissan. These are the death throes of a patient with Stage 4 cancer who’s in denial of his walking dead condition, and refusing to abide by the prescriptions of his potential healer.
Nissan is a guest coming to Honda’s house and decided to be the homeowner instead? Good riddance Nissan.
Go learn from Proton
Just sell to China
Need help still
wanna bossy
There goes my honda GTR dream
Dear Paul Tan, after almost 30 year with same design, its time to change the design of this portal to look more attractive, AI, etc in pace with change in IT development. I see less and less supporter leave their comment nowadays. Sincere from your supporter
already want to go bankrupt but still want equal grounds. it is a rubbish company but act high and mighty.
Nissan: Please let me backstab you too
Honda: Da meh!
Nissan: *sulks in the corner & cancels the deal*
Honda : take our Honda City and rebadge it as Nissa Almera. Or Honda CRV as Nissan XTrail.
Nissan : You mean we cannot rebadge Civic Type R as Nissan Skyline GTS?
Honda : Nope.
Nissan : We are calling Tan Chong to help.
Classic Japanese business ego…what a way to doom a storied company like Nissan. Yes, I am a fanboy of what was. Up until the 2000’s.