Honda and Nissan have announced the official cancellation of their planned merger, which had generated significant attention in the automotive world. The two Japanese carmakers, along with Mitsubishi, had been exploring a partnership to create a major Japanese automotive powerhouse, but ultimately, they couldn’t agree on the terms of the deal.
While Mitsubishi withdrew from discussions earlier in February, there was still hope that Honda and Nissan could restructure their collaboration to better compete against the growing influence of Chinese automakers. However, in a recent statement, Honda confirmed that the merger is no longer on the table.
The key sticking point, according to Nissan, was Honda’s shift in strategy. Initially, the idea was for both companies to share leadership equally, but Honda’s later proposal to become the majority shareholder, effectively making Nissan a subsidiary, led to the breakdown of talks. Despite this, both brands have emphasized that their ongoing collaborations, particularly in electric vehicle (EV) development, will continue.
Had the merger proceeded, the newly formed entity—potentially dubbed “Nonda” or “Hossan”—would have quickly become one of the top five global automakers, with a market value of around $60 billion.
In a separate update, Nissan revealed plans to restructure its operations, including seeking new partners, reducing global headcount, and consolidating internal operations. An additional progress report is expected next month.
