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Nissan, Honda merger plan may unravel amid growing differences
- IBJ Bureau
- Feb 06, 2025
Nissan looks set to step back from merger talks with rival Honda, two sources have said, calling into question a $60-billion tie-up to create the world’s no.3 automaker and potentially leaving Nissan to drive its turnaround alone.
Talks between the two Japanese automakers have been complicated by growing differences, according to multiple people familiar with the matter, all of whom declined to be named because they were not authorised to speak to the media.
The Reuters had reported earlier that Nissan could call off talks after Honda had sounded it out about becoming a subsidiary. Nissan baulked as this was a departure from what was originally framed as a merger of equals, one of the people said.
It was not immediately clear if the merger could survive, with comments from the two sources appearing to leave open the option for a restart.
Honda, whose market value of about 7.92 trillion yen is more than five times bigger than Nissan’s at 1.44 trillion yen, was increasingly worried about its smaller rival’s progress on the turnaround plan, another source said.
Nissan’s long-term alliance partner, French carmaker Renault would “vigorously” defend the interests of the group and its stakeholders, a spokesperson has added.
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