Nissan has officially pulled out of merger talks with Honda, ending discussions that could have created the world’s third-largest carmaker.
According to reports, Nissan president Makoto Uchida informed Honda president Toshihiro Mibe of the decision, wrapping up months of behind-the-scenes negotiations.
The merger, which at one point also included Mitsubishi Motors, was first announced in December. However, disagreements over Nissan’s future role became a key sticking point.
Honda, the larger of the two, had the upper hand from the start. The initial plan would have given Honda control, with the power to appoint the CEO and most board members. As talks went on, Honda reportedly pushed for Nissan to become a subsidiary, while Nissan preferred a more balanced joint holding company structure. Mitsubishi, in which Nissan has a major stake, backed out of the deal in January.
Now that the Honda deal is off, Nissan is exploring new partnerships—especially in the tech sector, with a focus on US-based companies. With the industry shifting toward electric and autonomous vehicles, automakers are increasingly looking to tech firms for strategic alliances.
Despite slowing global sales, North America remains Nissan’s most important market. The company is expected to officially confirm its decision to withdraw from merger talks at an upcoming board meeting before its Q3 earnings announcement next week.
