It was a $50 billion marriage that would not have ended "the pressures they face," Lucinda Guthrie, director of Mergermarket, a data provider, told the New York Times. Nissan and Honda will not merge, it was officially announced on Thursday, February 13. There will therefore be no creation of a new automotive group in the industry, which could have placed it in third place worldwide and overcome the difficulties encountered by Japanese manufacturers, particularly Nissan.
After an initial announcement in mid-December, the two brands, joined by Mitsubishi, began negotiations that very quickly resulted in Honda shareholders gaining influence over Nissan shareholders. Rather than a merger, Honda wanted to buy out its struggling competitor. A completely different goal than joining forces to fight against new competition from China, but also against the traditional Ford, Volkswagen, General Motors and Toyota.
"We will be beaten," Honda warned in December
"In the future, the three companies will collaborate as part of a strategic partnership aimed at the era of intelligence and electrified vehicles", Honda said and Nissan in a press release issued this Thursday, February 13. A sort of return to the roots of a project announced in March 2024, well before negotiations for a merger surfaced.
A half-hearted agreement, far from the merger project which aimed in particular to share the workforce, infrastructure and parts between the two manufacturers. The negotiations were to result in the creation of a holding company, with work to be completed in August 2026. In December, Honda CEO Toshihiro Mibe warned that "the discussions have started because we believe we need to strengthen our capabilities to combat them, including the current emerging forces, by 2030. Otherwise, we will be defeated."
Read alsoAhead of merging with Nissan, Honda unveils two strange cars at CES 2025
Nissan returns to its old concerns
Nissan, without the help of Honda, thus returns to its previous concerns, particularly around Renault's participation in its capital. The two companies that have largely dissociated themselves could end up with the return to the negotiations of a certain Foxconn, often presented as the manufacturer of iPhones on behalf of Apple, in Taiwan. Renault still owns 35% of Nissan, and is reportedly looking for a new investor to sell it to it.
A few hours before Nissan and Honda officially announced the cancellation of their merger, Foxconn chairman Young Liu told reporters including the BBC that "if cooperation requires it (the purchase of Nissan shares editor's note) we will consider it."
Nissan's other concerns will also include layoffs. Last November, the manufacturer surprised its shareholders by announcing its intention to lay off several thousand workers, in the face of falling sales in China and the United States. On the stock market, Honda is worth six times more than Nissan, at less than 10 billion euros. A capitalization far from the 40 billion euros at its last peak in 2015.
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