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Home Automotive

Honda And Nissan Cancels Merger

The two, together with Mitsubishi, will instead continue collaborating on electric vehicles (EVs) under a strategic partnership.

by Heirul Kamel
February 13, 2025
Honda 2024 CR-V Launch Malaysia
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Honda and Nissan have officially ended discussions on a potential merger, confirming instead that they will continue collaborating on electric vehicles (EVs) under a strategic partnership. The two Japanese automakers, along with Mitsubishi, had been exploring ways to strengthen their market position against increasing competition, particularly from China.

In a joint statement released on Thursday, the companies reaffirmed their commitment to working together within a strategic framework focused on intelligence and electrification in the automotive sector. However, the decision to discontinue merger talks marks a significant shift in their approach to industry challenges.

Ford And Nissan Cut Down Vehicle Production Due To Chip Shortage
Image: Reuters

A merger between Honda and Nissan would have created a major automotive entity, placing it alongside global industry leaders such as Toyota, Volkswagen, General Motors, and Ford. The alliance had been seen as a potential means of bolstering Nissan, which has struggled with declining sales and internal corporate difficulties in recent years.

honda nissan merger
Image: Honda

Meanwhile, Taiwanese electronics giant Foxconn has emerged as a potential investor in Nissan. According to Reuters, its chairman, Young Liu, stated on Wednesday that the company would consider purchasing shares in the Japanese automaker if such a move aligned with their cooperation needs.

(Source: Reuters)

Filed Under foxconnhondaMergerMitsubishiNissan
Updated 5:30 pm, Thu, 13 February 25
https://lowy.at/56klm
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