Nissan and Honda cancel their merger and will continue as independent companies

After several weeks of negotiations, Honda y Nissan have decided cancel their merger, which would have given rise to one of the largest automobile manufacturers in the world. The decision was officially announced after difficulties in agreeing on the governance structure of the new company led both companies to end the talks.

Although the merger will not materialize, Both companies have clarified that they will continue working together. through a strategic partnership focused on the development of technology and electric vehicles, reaffirming its commitment to the innovation in the automotive sector.

The reasons behind the failure of the Nissan-Honda merger…

One of the main points of conflict between both firms was the power structure of the new merged entity. Honda proposed that Nissan become a subsidiary under its control, something that Nissan executives categorically rejected, since they considered that their independence must be maintained.

Another key factor in the decision was the Nissan's financial situation. The company faces a complicated scenario, with significant losses in recent quarters and a reduction in its participation in key markets such as the US. Honda, for its part, expressed concern about Nissan's restructuring plan, which contributed to the collapse of the negotiations.

Impact on the automotive sector…

If the merger had been completed, Honda and Nissan reportedly formed the world's third-largest carmaker, just behind Toyota y Volkswagen. This would have allowed them to compete more solidly against the Chinese industrial giants y Tesla, whose advances in the electrification of the sector have been significant.

However, the end of the merger does not mean that the two companies will stop collaborating. The strategic agreement they signed previously remains in place, which will allow them to work together on the design of software, batteries and autonomous driving technology.

Nissan seeks alternatives…

Nissan's future remains a complete mystery. With financial difficulties very evident, the company could explore new alliances to strengthen its market position. One possibility is a rapprochement with Foxconn, the Taiwanese company known for manufacturing electronic devices, which has shown interest in the automotive sector.

The terms of a potential deal with Foxconn are still unclear, but there are chances that the Taiwanese company buys Renault's 36% stake in Nissan. This would redefine the terms of Nissan's relationship with its partners and could mean a change of strategy for ensure their survival in an increasingly competitive market.

Honda, on the other hand, has a more stable position and will be able to continue its growth without the need for urgent alliances. However, the firm has made it clear that it will remain attentive to possible opportunities within the industry. The cancellation of the merger between Honda and Nissan puts an end to one of the most ambitious agreements in the automotive sector recently. Both brands will continue to collaborate on specific projects linked to the mobility of the future, highlighting their commitment to electrification and innovation in the global market.

Source - Nissan - Honda - Mitsubishi

Images | Nissan – Honda – Mitsubishi