Japanese automakers Honda, Nissan, and Mitsubishi announced ending discussions on a potential business integration, AP News reported.
The companies cited mutual agreement to terminate their exploration of a collaborative structure in a joint statement.
The talks, which began in December 2023, initially involved Honda Motor Co. and Nissan Motor Corp. considering the establishment of a joint holding company. Mitsubishi Motors Corp. later expressed interest in joining the partnership.
However, the proposed integration raised questions among analysts, given the overlapping model lineups and strengths of the three automakers, particularly in an industry increasingly dominated by electric vehicle (EV) leaders like Tesla and BYD.
The automakers did not provide specific reasons for the breakdown of the talks. Earlier reports in Japanese media, citing unnamed sources, suggested that Nissan was hesitant to play a secondary role in the partnership, especially given Honda’s stronger financial position. Honda was expected to take the lead in the joint executive team, which may have created friction.
Nissan’s recent financial struggles further complicated the discussions. The company reported a loss for the July-September quarter due to declining vehicle sales, leading to the elimination of 9,000 jobs.
In response to the poor performance, Nissan’s CEO, Makoto Uchida, took a 50% pay cut as a gesture of accountability.
Future collaboration on EVs and smart technologies
Despite the collapse of the integration talks, the three automakers confirmed that they will continue to collaborate in areas such as electric vehicles and smart technologies, including autonomous driving.
This suggests that while a full-scale merger is off the table, the companies recognise the importance of pooling resources to compete in the rapidly evolving automotive landscape.
The decision to abandon the integration highlights the challenges traditional automakers face as they navigate the shift toward electrification and increased competition from tech-driven newcomers.
For Honda, Nissan, and Mitsubishi, the focus now shifts to strengthening their individual positions while exploring targeted partnerships to remain competitive in the global market.
