Honda-Nissan-Mitsubishi merger plans officially terminated

Putting a full stop to the rumours circulating online, the Japanese carmakers have officially called off their plans of forming a conglomerate. The MoU, which was signed between the three automotive giants back in December, has now been officially terminated. However, the respective carmakers will collaborate on strategic future technologies including EVs. Read on to know complete details about the matter.

Honda and Nissan merger called off over different objectives

Nissan has revealed that the Japanese carmaker has terminated talks with Honda for business integration, citing different objectives as the core reason. As per Nissan, Honda wanted to take hold of Nissan as a subsidiary rather than a partner, with the latter being assumed the goal of the MoU. The press release shared by Nissan mentioned, “Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the MOU, to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange”.

Also Read: Tata Harrier Stealth Edition price announced — All details here!

However, Honda and Nissan will continue to engage with each other within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles, which was signed before the MoU. It is worth mentioning that between the two companies, Nissan is desperate to resolve its issues. The carmaker has been struggling to crack the global markets amid diminishing sales and an aging portfolio. Nissan has already revealed its plans to restructure its operations, which includes over 2500 indirect job cuts and reducing other costs. 

Since the merger between Nissan and Honda has been called off, it remains to be seen how Nissan plans to proceed from here; whether to look for a partner or proceed independently — only time will tell. Talking about the India context, Nissan only has one car in its portfolio — the Magnite. Well, two cars, if you consider the X-Trail but it holds little significance given the limited number of units at an obnoxiously high price. Nissan India has laid out its plans to launch three cars by 2026, which will be shared with Renault. You can read more about the upcoming Nissan cars in India in the story linked below.

Also Read: Mahindra Scorpio N price hiked — Check new vs old price list here

To stay updated with all happenings and developments in the automotive world and be a part of interesting auto discussions and more, join our official AUTOVERSE Whatsapp community (click here to join).