Nissan and Honda Scrap Merger Plans as Nissan Seeks New Partner

Nissan and Honda have officially called off their planned merger, ending negotiations that began in December. The deal, which would have created one of the world’s largest automakers, collapsed after Honda proposed making Nissan a subsidiary, a move Nissan ultimately rejected.

Why the Merger Fell Apart

The decision to abandon the merger was described as “swift”, with both companies failing to find common ground on leadership structure and strategic direction. Honda sought greater control, while Nissan, struggling with declining sales and cost-cutting measures, was unwilling to cede independence.

What’s Next for Nissan?

Now, Nissan is actively searching for a new merger partner to strengthen its global position. One potential candidate being considered is Taiwanese electronics giant Foxconn, which has been expanding into the electric vehicle (EV) market.

While Honda moves forward independently, Nissan’s future may depend on securing a strategic alliance that can support its financial recovery and EV ambitions.