Honda and Nissan have officially ended their merger talks, marking the conclusion of what could have been a game-changing partnership. The talks, which initially aimed to establish the world’s fourth-largest automaker, fell apart after Honda proposed making Nissan its subsidiary rather than forming a joint holding company. Mitsubishi, initially part of the discussions, also issued a statement confirming the development.
The talks began in March 2024 when the companies signed an MoU to develop a common electric powertrain. By August, a second MoU was signed, focusing on EVs, particularly Software-Defined Vehicles (SDVs) with AI and Advanced Driver Assistance Systems (ADAS). In December, discussions about a full-fledged merger emerged, raising expectations for a competitive alliance against Tesla and Chinese EV manufacturers.
While the merger is off the table, Honda, Nissan, and Mitsubishi will continue working together on autonomous driving and EV technology. This partnership remains crucial as automakers face growing competition in the EV sector.
Following the announcement, Honda’s stock surged on the Tokyo Stock Exchange, whereas Nissan’s shares saw a decline. Industry analysts suggest that despite the fallout, the continued collaboration on next-gen automotive tech could still yield long-term benefits for all parties involved.
