Nissan has officially ended merger discussions with Honda and is now open to working with new partners, including technology firms such as Taiwan’s Foxconn, according to sources familiar with the matter.
Nissan CEO Makoto Uchida informed Honda CEO Toshihiro Mibe on Thursday that the company was withdrawing from the talks after Honda proposed making Nissan a subsidiary. This decision halts what could have been a transformative deal, potentially creating the world’s third-largest automaker.
The breakdown of negotiations underscores the growing strategic differences between the two Japanese automakers. Nissan’s board is expected to formalize the withdrawal before the company’s third-quarter earnings announcement next week. Honda, Japan’s second-largest automaker, has maintained that any integration must involve Nissan becoming a subsidiary, a condition Nissan ultimately rejected.
With the merger off the table, Nissan is looking at new alliances to navigate the rapid shift toward electric and software-driven vehicles. While Foxconn, the world’s largest electronics contract manufacturer, had previously approached Nissan about a potential partnership, the automaker initially declined the offer. However, sources indicate that Nissan remains open to revisiting opportunities with tech-focused partners.
The collapse of the Honda deal raises concerns about Nissan’s long-term strategy as it continues its turnaround efforts, including planned job cuts of 9,000 workers and a 20% reduction in global production capacity. Following the announcement, Nissan’s shares rose 7.3%, while Honda’s fell 4%, reversing their previous day’s market movements.
