Honda and Nissan are unlikely to merge into the third-largest car manufacturer

Negotiations failed Honda and Nissan are unlikely to merge into the third-largest car manufacturer

2025-02-11 From Susanne Braun | Translated by AI 2 min Reading Time

In December 2024, the car manufacturers Nissan and Honda wanted to evaluate whether a merger to become the third-largest vehicle manufacturer was possible. Apparently, this plan has failed. Media reports based on internal sources indicate that Nissan has withdrawn from the negotiations.

According to reports, the negotiations announced in December 2024 for a merger of Honda and Nissan under a holding company have been halted.(Image: Honda) — According to reports, the negotiations announced in December 2024 for a merger of Honda and Nissan under a holding company have been halted.
(Image: Honda)

The Japanese vehicle manufacturers Honda and Nissan have maintained a partnership for some time now. In December 2024, it was stated that an evaluation would be conducted to merge both companies under a holding company. Objectively, this makes sense, as a merger would bring advantages. Development costs in a market increasingly geared towards electromobility and SDV could be shared. Procurement and production could be organized more efficiently, and a stronger position against international competitors could be achieved.

In early February 2025, these considerations have apparently taken a back seat, as multiple media outlets, including The New York Times, report based on internal, anonymous sources that the negotiations have come to a standstill, if not been entirely abandoned. According to rumors, Honda desired a more significant voice in the holding company, which reportedly extended to the point where Nissan would be relegated to a subsidiary. This did not sit well with Nissan's management. "Yesterday, Nissan President Makoto Uchida informed Honda President Toshihiro Mibe that Nissan would dissolve the memorandum of understanding signed in December to discuss the formation of a holding company for both companies," Electronics Weekly reported on February 7, 2025.

Skepticism at Honda

The authors of the New York Times report that there was already dissatisfaction in the Honda board at the beginning of the talks. Nissan is struggling with a decline in sales, which has forced the company to make significant cuts. Based on its own analyses, it was decided that strict conditions would need to be set for Nissan in the event of a merger.

In contrast to the reports from Electronics Weekly, the Times indicates that the talks would continue, according to sources familiar with the negotiations. "Until at least next week, when Honda and Nissan announce their results for the last quarter from October to December, the companies are likely to make no official announcements." A merger would make the holding company the third-largest automaker in the world after Toyota and Volkswagen. (sb)

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Date: 08.12.2025

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