Japanese automakers Honda, Nissan, and Mitsubishi announced on Thursday the termination of talks regarding their proposed business integration.
Nissan CEO Makoto Uchida revealed that discussions shifted focus from forming a joint holding company to making Nissan a subsidiary of Honda. “The intent was to join forces to win in the global competition, but this was not going to realize Nissan’s potential, so I could not accept it,” Uchida stated. He affirmed that Nissan would aim for a turnaround independently of Honda.
Honda CEO Toshihiro Mibe, in a separate news conference, expressed disappointment, stating, “I felt the potential was great, but I also knew actions that would bring pain were necessary to realize that.” Mibe disclosed that Honda had proposed a stock swap to accelerate decision-making, but the automakers decided to end their collaboration discussions following respective board meetings.
Honda and Nissan had initially planned to finalize an agreement by June 2025 and establish the holding company by August. Mitsubishi Motors had also considered joining the merger talks. However, analysts questioned the benefits of the integration, citing overlapping model lineups and challenges posed by competitors like Tesla and China’s BYD in the electrification race.
Despite halting the merger discussions, the three companies will continue collaborating on electric vehicles, smart cars, and autonomous driving technologies. Speculations in Japanese media suggested internal conflicts, with reports claiming Nissan resisted becoming a minor partner in the proposed structure.
Nissan denied having official talks with Taiwan’s Foxconn regarding potential investments, though Uchida emphasized exploring various turnaround strategies. A detailed plan is expected within a month.
On the financial front, Honda reported a 7% profit decline for April-December 2024, while Nissan faced a sharp profit crash, reporting just 5.1 billion yen compared to 325 billion yen in the previous year. Nissan also forecasted significant losses for the fiscal year through March.
Uchida acknowledged Nissan’s financial struggles and left the decision of his resignation to the company’s board.
Source: Swifteradio.com
