Nissan-Honda merger stalls: Strategic rift threatens future collaboration

The news: Nissan and Honda’s merger discussions risked collapsing following reports of irreconcilable strategic differences. Nissan reportedly rejected Honda’s proposal to absorb it as a subsidiary, deeming terms “unacceptable,” per Reuters

Both automakers confirmed ongoing negotiations via an Integration Preparatory Committee but deferred a final decision to mid-February.

An industry in flux: Announced in December for a possible 2027 completion, the $60 billion merger between the two Japanese car companies would have created the world’s third-largest automaker, potentially reshaping global competition as the industry shifts to electric vehicles (EVs).