Honda, Nissan May Scrap Merger Talks Amid Industry Disruption

TOKYO, Japan - Honda Motor Co. and Nissan Motor Co. are reportedly considering calling off their merger discussions, according to the Asahi Shimbun newspaper. The move would further destabilize Nissan, which has faced significant challenges in recent years.

Honda, the second-largest Japanese automaker, and Nissan, the third-largest, announced talks last year to combine their operations. The merger would have been a significant shift for the Japanese auto industry and a response to the growing threat from electric vehicle (EV) manufacturers.

The global auto industry is undergoing a major transformation driven by EV makers. Legacy automakers like Nissan have struggled to adapt, while Honda has fared somewhat better. Nissan has been particularly impacted by the arrest and removal of former Chairman Carlos Ghosn in 2018.

The boards of both Nissan and Honda are scheduled to meet soon to discuss ending the merger talks. According to the Asahi, the discussions have not progressed as planned, with Honda seeking to incorporate Nissan as a subsidiary, a proposal Nissan has reportedly resisted.

A Honda spokesperson was not immediately available for comment, while a Nissan spokesperson confirmed that discussions were ongoing and an announcement would be made mid-February once a decision is reached.