Honda and Nissan Terminate Merger Talks
Japanese auto giants Honda and Nissan have confirmed the termination of their proposed merger, which aimed to create the world's third-largest automaker.
In a joint statement, the companies announced the decision to "terminate the MOU (memorandum of understanding) signed on December 23 last year for consideration of a business integration between the two companies."
The merger discussions were initially intended to strengthen the companies' position in the electric vehicle market amidst competition from Tesla and Chinese rivals. However, negotiations reportedly broke down after Honda proposed making Nissan a subsidiary rather than merging under a new holding company.
Honda and Nissan emphasized that the termination of merger talks will not impact their financial performance. Honda recently reported a 7% decline in profits for April-December, while Nissan projected an annual net loss of $518 million.
Despite the failed merger, the three automakers, including Mitsubishi Motors Corp., will continue their collaboration on electric vehicles and smart cars with autonomous driving capabilities.