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Japanese automakers Nissan and Honda have announced the cessation of merger talks that would have created a $60 billion entity, making it the fourth-largest carmaker globally after Toyota, Volkswagen, and Hyundai. According to Reuters, complications arose during negotiations, particularly over Honda's proposal for Nissan to act as a subsidiary. Despite ending merger discussions, both companies plan to continue their collaboration in electric vehicle technology.
The two companies, along with Mitsubishi Motors, had initially considered merging late last year, but differing objectives hindered progress. As the automotive industry faces challenges from growing Chinese electric vehicle makers like BYD, Nissan is proactively restructuring, with plans to cut 9,000 jobs and reduce its global capacity by 20%. This move introduces uncertainty for Nissan’s 130,000 employees, although the UK factory in Sunderland is likely to remain unaffected.
Nissan is also exploring partnerships with new collaborators, including Taiwan's Foxconn, which has expressed interest in cooperation rather than outright acquisition.