Nissan and Honda reportedly have a large-scale plan to merge in the grave, writes the Asian business media Nikkei.
Nissan and Honda can't agree on the future, and that's why all plans to merge have been shelved.
This is reported by Nikkei Asia .
Following the news, Nissan's share price plummeted by as much as 5 percent – because trading in it was suspended by the stock exchange authorities.
Conversely, trading in Honda shares continued. And on top of the news of the breakup with Nissan, the share ended up up 8 percent.
Nikkei writes that Honda wanted to make Nissan a subdivision, and that it was an arrangement that Nissan's management absolutely could not accept. s
Honda, Japan's second-largest automaker, and Nissan, the country's third-largest, said as recently as December last year that they would merge and create the world's third-largest car group by sales.
This should give the Japanese a huge advantage over the competition from China, where BYD is currently pulling the majority of the load.
According to sources familiar with the negotiations between Nissan and Honda, negotiations over a merger have only gotten worse since the news broke in late December.
However, none of the sources Nikkei spoke to wanted to be named. Apparently, they are not authorized to speak to the media. At least not about the negotiations between the two car brands.
This means that it looks as if Nissan is once again on its own in a divorce from the Renault alliance, something that saved the Japanese when they were in a similar economic crisis.
At the end of 2024, Nissan's CEO also said that the brand would run out of money in just a year if a solution to the group's financial problems was not found.
