As merger becomes acquisition, Honda and Nissan scrap talks

The promise of a new Japanese automotive powerhouse is gone, at least for now, as Honda and Nissan terminate merger talks. The initial Memorandum of Understanding (MoU) was signed on 23 December 2024, outlining plans for a “business integration”. Mitsubishi later joined the talks, offering the prospect of even more synergies. The aim was to pool financial and technological resources and bolster defences against rising competition from China.

Chinese players, supported by hefty government incentives, have taken the global lead in the shift to electric vehicles (EVs) and software-defined mobility. In response, automotive players around the world are joining forces, forming R&D and production alliances in key technology areas in a bid to catch up. Honda, Nissan, and Mitsubishi already have such projects in place but were looking to take the next step with an outright merger.