Nissan and Honda Merger Collapses, CEO Warns of Survival Challenges

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Nissan and Honda have mutually terminated their proposed merger, which was aimed at forming a strong tripartite alliance that would also include Mitsubishi. The decision, announced on February 13, 2025, has left both companies reassessing their strategic positions, with Nissan CEO Makoto Uchida stating, “It will still be difficult to survive without leaning on future partnerships.”

Honda CEO Toshihiro Mibe attempted to maintain a positive outlook, acknowledging the potential for collaboration on electric vehicles and other technologies despite the setback. However, reports suggest that cultural differences and disagreements over management structure contributed to the merger's collapse. Honda had reportedly wanted Nissan to operate as a subsidiary, a move Nissan resisted.

As Nissan's shares declined, Honda’s stock saw gains. Both companies now face uncertain futures in a rapidly evolving automotive market. Foxconn, a Taiwanese electronics manufacturer, has expressed interest in collaborating with Nissan to enhance its electric vehicle production capabilities. Additionally, private equity firm KKR is reportedly considering an investment, even as Nissan cuts its annual profit forecast amidst a steep decline in profits.

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