Honda and Nissan have officially called off their merger negotiations, which began in December 2024. Both companies held board meetings on February 13, 2025, where they decided to end the discussions.
According to reports from Nikkei Asia and NHK, the automakers are expected to hold separate press conferences to elaborate on the reasons behind the collapse of the merger plans.
The announcement coincided with the release of both companies' financial reports. Honda and Nissan will not only explain why the merger failed but also provide insight into their financial results and outline their respective future business strategies.
The merger aimed to create the world's third-largest automotive group, enhancing their capabilities in electric vehicles (EVs) and software development while reducing costs. However, a key reason for the breakdown was Nissan's inability to propose satisfactory restructuring and layoff plans. This led Honda to suggest making Nissan a subsidiary to directly implement structural reforms, which Nissan resisted.
Nissan's future strategy to overcome its business challenges is now under scrutiny. Nissan's CEO Makoto Uchida is expected to outline restructuring measures at a press conference in the afternoon of February 13, 2025. The company's previously announced plan in November 2024 included a 20% production cut and 9,000 job reductions, but internal opposition may pose significant challenges to implementation. With the merger terminated, both companies are compelled to pursue their own strategies in the EV and software sectors.
Foxconn eyes Nissan stake as merger fails
As Nissan seeks a lifeline after the failed Honda merger, Foxconn is signaling interest in acquiring Renault's stake in the Japanese automaker. Foxconn chairman Young Liu stated, "But purchasing its shares is not our aim; our aim is cooperation," seeking to leverage Nissan's expertise for its burgeoning EV ambitions. A deal could reshape the automotive landscape, blurring the lines between traditional carmakers and tech giants.
