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For months, rumors of a potential Honda-Nissan merger fueled speculation about a major shift in the Japanese auto industry. If successful, the deal would have created the third-largest carmaker in the world, helping both companies strengthen their positions in the rapidly evolving electric vehicle (EV) and autonomous driving industries.
But last Thursday, talks officially collapsed. There were deep disagreements over the structure of the merger. Honda wanted full control of Nissan, proposing that it become a wholly-owned subsidiary—a move Nissan’s leadership strongly resisted. CEO Makoto Uchida argued that Nissan should maintain its independence, fearing that full integration would limit the company’s long-term flexibility and innovation. According to sources at Reuters, no agreement on governance or corporate direction is what ultimately led to the deal being called off.
Could the Merger Be Revived?
Despite the fallout, Honda hasn’t completely ruled out a future deal—but with one major condition. Reports indicate that Honda would be open to re-engaging in talks if Nissan’s CEO, Makoto Uchida, steps down. This suggests that leadership changes at Nissan could breathe new life into the potential partnership.
Meanwhile, Nissan is actively seeking other alliances to navigate its financial and operational challenges. Companies like Foxconn have been rumored as possible collaborators, signaling that Nissan still recognizes the need for strong partnerships, even if Honda isn’t immediately in the picture.
What’s Next for Honda and Nissan?
For now, the Honda-Nissan merger remains off the table, but the situation is far from settled. If Nissan undergoes leadership changes or faces increasing pressure to stabilize its future, a renewed merger attempt could still emerge.
With EV competition heating up, strategic partnerships are more crucial than ever. Whether Honda and Nissan reunite or pursue different paths, one thing is certain—the future of Japan’s auto industry continues to remain unpredictable.
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