Honda and Nissan scrap their partnership plans
In an ever-changing automotive world, it isn’t uncommon for brands to come and go; however, the Japanese automaker Nissan might have once been a force to be reckoned with but is now under serious threat. In December of last year, it appeared that Honda could be Nissan’s saving grace, as they were to join forces with mutual benefit on the cards. However, reports from Honda indicating an interest in making Nissan a subsidiary forced the merger talks to an early conclusion.
Originally, the plan was to create a holding company to integrate the brands from 2026 onwards. Because of the clear benefits, even Mitsubishi expressed an interest in joining the partnership, but Nissan has since decided to stay independent. A memorandum was signed on the 23rd of December, and it seemed incredibly positive from both sides. Unfortunately, Honda appeared to have another agenda, which has been kept under wraps.
A classic case of “if it seems too good to be true”. Since the start of the discussions, Nissan has always wanted to be treated as an equal partner in the merger discussions, whereas Honda has started to express a stronger interest in becoming Nissan’s parent brand. It is a bold ask, but considering their interest in keeping Nissan afloat, it isn’t a completely unjust request. Honda also didn’t want Renault to be included in the discussions and requested that Nissan buy back the French component of the company.
Unhappy with Nissan’s efficiency in their restructuring process and displeased with Honda’s overpowering demands, the two have separated from the initial MoU but are still interested in combining forces surrounding electrification with both brands remaining independent. With that being said, Foxconn, a Taiwanese electronics company, is still interested in a collaboration with Nissan but refuses to buy the company outright, so for now Nissan’s restructuring process is underway, which unfortunately means letting go of 9,000 employees and decreasing the company’s size by about 20%.
