Why The Honda And Nissan Merger Probably Isn't Going To Happen Now

The merger between Honda and Nissan is set to fail before it even begins.
Reports from Japan indicate Honda and Nissan may be preparing to scuttle merger discussions. According to Asahi Shimbun, Honda has become annoyed by the slow progress of the integration talks and instead proposed absorbing Nissan as a subsidiary. Nissan executives balked at the suggestion and now the whole deal is at risk of falling apart.
Nissan said it would cut 9,000 jobs worldwide and has announced a 20% production capacity reduction, but the automaker has been struggling to compile a restructuring plan, a move Honda requires for the merger.
The boards of both automakers will meet separately to determine whether talks should continue. According to Bloomberg, some at Nissan are still in favor of the plan, with the board expected to vote on Honda's proposal to buy Nissan's shares outright later today.
The two companies, Japan’s second and third-largest automakers, began discussions late last year about merging their operations. The move was seen as a response to rising competition from new players, particularly Chinese automakers like BYD, which have disrupted the global automotive landscape with aggressive expansion into electric vehicles. The merger, under a joint holding company, would create the third-largest global automaker by volume behind Toyota and Volkswagen.
While Honda has not commented on the report, Nissan stated that discussions remain ongoing and that an official announcement will be made in mid-February, as previously planned.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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