Nissan Honda Merger Talks Reportedly in Jeopardy After New Disagreements

Nissan and Honda might not merge now. Talks fell apart soon after they began. They signed an agreement back in December. Executives discussed forming a huge car company that would have been the world’s third largest.

Honda wanted to own Nissan completely. This upset the original plan for a “merger of equals.” Nissan’s CEO liked the idea and saw that the firms could share strengths. Honda’s executive saw potential too and that they could build on past work, standardize parts, and share research.

Nissan has problems as sales are down and they might cut production by 20%. This could mean 9,000 fewer jobs. Nissan employs 6,000 people in Sunderland. It also supports supply chain jobs, and a supplier, Jatco, is building a new factory nearby with government funding.

Honda’s executive pushed Nissan to improve and boost profits. He said both firms must be strong alone. The merger deadline was pushed back. Nissan’s global production fell in 2024, and sales also decreased a bit.

Both Nissan and Honda seem to disagree with news reports. They might make a final decision soon. New car registrations dropped last month, with petrol car sales falling sharply. Electric car sales jumped up and now have over 20% of the market.