In early December 2024, Honda and Nissan inked a deal to discover the potential of a mega-merger. The 2 Japanese manufacturers signed a memorandum of understanding (MOU) and arrange a committee to debate the potential of establishing a brand new holding firm that will turn into operational as early as 2026. Nevertheless, tensions shortly surfaced, and a brand new report signifies the deal would possibly in the end fall via.

Reuters cites the Japanese day by day newspaper The Asahi Shimbun saying the Honda-Nissan merger could also be known as off. With out giving names, the publication quotes “a number of sources” acquainted with the matter, declaring the merger talks might finish for the reason that two manufacturers have failed to succeed in an settlement. Each automakers will maintain board conferences to debate whether or not the tie-up continues to be price pursuing, however the state of affairs doesn’t look good. Nikkei Asia can also be reporting that Honda and Nissan will droop the merger talks.

Formally, the 2 have solely been speaking a few merger. Nevertheless, behind closed doorways, Honda reportedly expressed curiosity in turning Nissan right into a subsidiary. Sure, Honda apparently needed to purchase Nissan outright however confronted robust opposition, in keeping with The Asahi Shimbun. As some will recall, months earlier than the merger talks have been even confirmed, former Nissan supremo Carlos Ghosn mentioned Honda was all in favour of a “disguised takeover” of Nissan:

“I am unable to think about for one second how it may work between Honda and Nissan except it is a takeover, except it is a disguised takeover by Honda of Nissan and Mitsubishi with Honda within the driver’s seat. It’ll be a takeover, a disguised takeover.”

In line with Bloomberg, Nissan might maintain a board assembly later right now to vote towards Honda’s want to take management. However some Nissan higher-ups are believed to be okay with Honda calling the photographs, so we’ll have to attend and see how this performs out. Whereas a Honda spokesperson refused to remark, Reuters heard from Nissan that discussions are nonetheless taking place and {that a} ultimate resolution might be introduced by the center of the month.

Photograph by: Nissan

Though Mitsubishi signed an MoU with Honda and Nissan for a possible alliance in sure areas, the smaller Japanese carmaker is reportedly not all in favour of taking part within the mega-merger. Mitsu apparently desires to stay unbiased however is open to the thought of a better collaboration.

It is also been reported lately that Honda does not need Renault to be concerned within the merger and desires Nissan to purchase again its shares in order that the French automaker is out of the tie-up. If Honda and Nissan determine to merge, which appears more and more unlikely, the ensuing holding firm will turn into the third-largest automaker by gross sales, behind Toyota and the Volkswagen Group.