Honda and Nissan said in December they aimed to finalize negotiations by June 2025 and establish a holding company in 2026 under which both would operate. Mitsubishi had also considered joining the framework.
However, after considering ‘various options,’ including Honda's proposal to make Nissan its subsidiary, they decided to end the talks to ‘prioritize speed of decision-making and execution of management measures’ in an increasingly volatile market heading into electrification, they said in a statement.
The two carmakers aimed to cut costs by sharing the growing financial burden of developing EVs and software to better compete with global rivals like U.S.-based Tesla Inc. and China's BYD Co.
When they revealed their plan to begin merger talks at a press conference in December, Honda said struggling Nissan would need to boost its turnaround efforts as a condition for the deal.
Honda and Nissan initially said they would unveil the details of their tie-up plan by the end of January but pushed it back to mid-February.
