Nissan May Call Off Merger Talks With Honda, Source Says

Nissan's plans to become the world's third-largest carmaker by sales appear to be in jeopardy, based on rumours that Nissan's merger talks with Honda are on the verge of failure. According to the Asahi Shimbun newspaper, as quoted by Reuters, Nissan's board of directors will meet soon to decide on a course of action.
Honda is increasingly worried about Nissan's turnaround plan and internal conflicts, which is complicating the merger negotiations. Although no formal declarations have been made, an announcement about the merger is expected in mid-February, a source familiar with the matter told Bloomberg.


Honda and Nissan announced a merger in December of last year, which would form the world's third-largest automaker as the industry shifts away from fossil fuels. The automakers' two presidents, Toshihiro Mibe of Honda and Makoto Uchida of Nissan, signed a memorandum of agreement that envisions the formation of a holding company by August 2026, potentially placing them third behind Toyota and Volkswagen.

However, an unnamed Nissan executive was quoted by The Yomiuri daily as claiming that the merger was now "almost impossible," with challenges for both parties to satisfy shareholders. 


Having never fully recovered from years of crisis triggered by the arrest and removal of former Chairman Carlos Ghosn in 2018, Nissan, whose market value is less than five times that of Honda, has been struck more severely than some other automakers by the transition to electric vehicles.