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Japanese automakers Honda and Nissan call off merger
The Japanese car manufacturers Honda and Nissan are, as expected, drawing a line under their merger talks. The negotiations that started in December will be terminated, the companies announced on Thursday in Tokyo.
Cooperation with Mitsubishi Motors
Instead, the companies want to cooperate with Mitsubishi Motors in the strategic partnership planned since August of last year, which is focused on the digitalization and electrification of vehicles. It had become increasingly clear in recent weeks that a merger would not materialize, with several media outlets reporting in that direction.
Japanese Car Manufacturers Under Pressure
The Japanese car manufacturers had hoped to better defend themselves together against the weakening business in China and the growing competition in the expanding electric car market. Japanese automakers have fallen behind globally in this area.
Tesla and the Chinese manufacturer BYD are putting pressure on the Japanese in the USA and China. Nissan, in particular, is struggling in the Chinese market, where sales have significantly decreased.
Problems with Alignment
The discussions included, among other things, that Nissan could come under the umbrella of Honda as part of a joint venture - which, however, failed. The companies decided to focus on faster decision-making and implementation processes in the rapidly changing market, the statement said. Honda and Nissan are the second and third largest automakers in Japan after VW rival Toyota.
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