Is Nissan abandoning merger talks with Honda?

It appears the planned merger between Nissan and Honda may not happen after all. This comes after Nissan has reportedly called off the merger deal with Honda regarding the matter after weeks of talks.

Based on a report by Nikkei Asia, Nissan will withdraw the memorandum of understanding (MOU) the two companies signed last December 2024. In addition, people familiar with the matter shared that growing differences between the two companies have complicated matters. Honda also apparently plans to make Nissan a subsidiary which is a stark difference from the original plan of having Nissan as an equal partner in the planned merger.

With Nissan reportedly opting out of the merger deal, this could pose a crisis for the embattled automaker. Currently, Nissan is in the middle of a turnaround by cutting jobs and shrinking its global capacity by 20%. Since Nissan is not keen on becoming a subsidiary, Honda may be looking to back out of the merger deal.

As of now, board members at Nissan are still discussing the next course of action regarding the matter. However, a Nissan spokesperson shared that the report by Nikkei “was not based on any information announced by Nissan” and that they aim to finalize the decision by mid-February and will announce it at that time. On the other hand, a Honda spokesperson shared that the company has yet to hear from Nissan regarding the decision to withdraw the MOU they signed last year.

With the two brands reportedly not coming to an agreement, Nissan may have to find an alternative to their current situation.

Sources: Nikkei Asia, Reuters