Nissan Motor Co. ended merger discussions with Honda Motor Co., derailing what would have been a historic tie-up to create the world’s third-largest automaker. The breakdown comes after the companies clashed over fundamental deal terms and corporate structure.
The automaker plans to withdraw from a December memorandum of understanding after rejecting Honda’s proposal to make Nissan its subsidiary, according to people familiar with the matter. The companies hit an impasse over how to value each business under a proposed holding company structure.
A key sticking point emerged when Honda set a January deadline for Nissan to present a turnaround strategy, including restructuring plans. While Nissan announced 9,000 global job cuts in November, resistance from factory workers complicated efforts to finalize deeper cost reductions.
The failed talks mark a setback for both companies as they seek to compete in an industry racing toward electric vehicles. The original plan called for establishing a joint holding company by August 2026.
Nissan pushed for an equal partnership role but faced mounting tension with Honda as discussions progressed. The widening differences ultimately led both sides to conclude that continuing integration talks would be unproductive.
The companies may still explore collaboration on electric vehicles, though the scope remains unclear after the merger collapse.
