The plan has collapsed.
Honda, Nissan, and Mitsubishi announced on Thursday that they are halting discussions regarding a $50 billion business integration plan.
Nissan’s CEO, Makoto Uchida, explained that the focus of the talks shifted from creating a joint holding company to making Nissan a subsidiary of Honda. He stated that while the goal was to unite in global competition, this approach did not align with Nissan’s potential, leading to his decision to reject the plan. Nissan, he added, would pursue a turnaround independently of Honda.
Honda’s CEO, Toshihiro Mibe, expressed disappointment in a separate news conference, noting that Honda had proposed a stock swap to expedite decision-making processes. He acknowledged the potential of the partnership but also recognized the need for difficult decisions to make it work.
The automakers issued a joint statement confirming the end of their collaboration discussions, a decision that was ratified by their respective boards. In December, Honda and Nissan had announced talks to form a joint holding company, with Mitsubishi Motors also considering joining the group.
From the outset, analysts questioned the potential benefits of such a partnership, given the overlap in their product lineups and the challenges posed by new competitors like Tesla and BYD, along with the industry’s shift toward electrification. Honda and Nissan had initially aimed to finalize an agreement by June and set up the holding company by August.
Despite the end of the integration talks, the three companies will continue to collaborate on electric vehicles and smart car technologies, including autonomous driving. Recent media reports had speculated that the discussions were faltering, citing sources who suggested Nissan was hesitant to become a subordinate partner. Both Uchida and Mibe denied rumors involving Taiwan’s Foxconn potentially investing in Nissan.
Nissan, which has faced financial difficulties, reported a significant drop in profit for the first half of the fiscal year, including a 7% decline in profits for Honda. Nissan’s April-December profit fell sharply, and it projected losses for the full fiscal year. When asked about resigning over Nissan’s results, Uchida expressed willingness but emphasized that the decision would be up to the board.
