On February 13, 2025, Honda and Nissan Motor Co. officially announced the termination of talks on a business merger.
This decision was mainly due to disagreements between the two companies regarding restructuring measures.

The two companies had initially aimed for an equal management integration through the establishment of a joint holding company. However, Honda’s sudden proposal to Nissan in the middle of last month to make Nissan a subsidiary of Honda caused a rift in the relationship between the two companies. Honda is believed to have made the proposal out of concern that Nissan’s restructuring plan would not materialize, but Nissan objected, saying that it would not become a subsidiary and that it would not be possible to make a decision on such an important matter as personnel reductions within a month.

Due to these differences of opinion, the two companies’ top executives were unable to bridge the gap, and at a meeting of the board of directors on March 13, the decision was officially made to terminate the talks. However, it is expected that the two companies will continue to collaborate in software development and other areas.

The background to the merger talks was the intensifying competition in the electric vehicle (EV) market. Honda and Nissan had been trying to strengthen their competitiveness through cooperation in the areas of EVs and software development. However, the disagreement over the business integration could not be resolved, leading to the termination of the talks.

Nissan’s management restructuring remains an issue, and a new turnaround plan, including support from other companies, will be required. Honda, on the other hand, is expected to continue aiming to strengthen its competitiveness in the areas of EVs and software development. The termination of the talks is expected to have a significant impact on the management strategies of both companies and the automotive industry as a whole. The future developments of the two companies will be closely watched.