Merger Talks Collapse Between Nissan and Honda – UPDATE

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UPDATE – 5 February 2025: Nissan has reportedly suspended merger talks with Honda.

Japanese newspaper Nikkei Asia reports the two car brands have been unable to reach a consensus on the deal.

It claims the two companies will withdraw from the memorandum of understanding agreed to in December, which would have seen the two carmakers join together – with Mitsubishi – to make one of the largest car giants in the industry.

Our original story continues unchanged below.

Honda has put forward a plan which would make Nissan its subsidiary, company insiders have revealed.

According to a report from Japanese publication Nippon, the new proposal could see Nissan become a subsidiary of Honda – rather than the two carmakers entering an equal partnership with Mitsubishi.

Honda, Nissan, and Mitsubishi entered a Memorandum of Understand (MOU) in late 2024, with tentative plans to merge by August 2026, however those plans appear to have quickly dissolved in the months following.

The merger now seems in doubt, with Honda wanting Nissan to triple its profit, and Mitsubishi casting doubt on whether it would have an equal voice at the table.

In the latest development, it seems Honda may have put forward an alternative proposition to buy shares in Nissan, intending to involve itself in the long-term management of the struggling carmaker.

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However, the report claims Nissan strongly opposes Honda taking control of its management.

Earlier reports out of Japan suggest the merger between the three domestic companies was a push by the Japanese Government to avoid Nissan being run by a foreign entity.

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Ben Zachariah
Ben Zachariah is a seasoned writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and has written for Drive.com.au, Wheels, MOTOR, 4X4 Australia, Street Machine and CarSales.com.au. He has also freelanced for watch enthusiast website Time+Tide and US defence website Task & Purpose. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.
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