Nissan Open to Collaboration with Tech Partners Amidst Merger Talks Collapse
Japan's Nissan Motor is exploring partnerships with various entities, including technology companies, following the breakdown of merger discussions with Honda Motor.
Nissan's withdrawal was prompted by Honda's proposal to make Nissan a subsidiary. The potential merger aimed to create the world's fourth-largest automaker, with annual production close to 7 million vehicles.
Nissan's financial challenges have hindered its electrification efforts, which it deems crucial to remain competitive against Chinese rivals. The company has been facing liquidity constraints due to heavy capital spending and declining profits.
Moreover, Nissan faces significant bond maturities of around 1 trillion yen ($6.58 billion) within the next two years.
Nissan has been particularly affected by the transition to electric vehicles due to its prolonged crisis following the arrest of former chairman Carlos Ghosn in 2018. Its market capitalization has since plummeted compared to Honda.
In the past year, Nissan's share price has declined by almost 30%, reaching levels below the price at which French partner Renault acquired its stake in Nissan in 2002. The price rebounded following the announcement of merger talks with Honda but has since fallen back.