Nissan has officially ended merger talks with Honda, citing fundamental disagreements over the structure of the deal. The proposed $60 billion merger would have created the world’s third-largest automaker, but negotiations reportedly collapsed after Nissan rejected Honda’s proposal, which would have positioned Nissan as a subsidiary rather than an equal partner.
Talks between the two companies began in December 2024, when they signed a memorandum of understanding with plans to finalize a joint venture by August 2026. However, by early February 2025, Nissan CEO Makoto Uchida personally informed Honda CEO Toshihiro Mibe that the company was withdrawing from the agreement. Nissan’s board had already made the decision a day earlier.
While a full merger is off the table, both companies may still collaborate in limited areas, such as electric vehicle (EV) software and battery development. Meanwhile, Nissan is exploring new partnership opportunities, with Taiwanese electronics giant Foxconn emerging as a potential ally. Foxconn has expressed interest in working with Nissan on EV production, possibly as part of its growing automotive division
Despite the failure of the merger, Nissan and Honda continue to face competitive challenges in an industry increasingly dominated by EVs and technological innovation. The collapse of talks leaves both automakers seeking alternative strategies to remain competitive in a rapidly changing market.
