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# Honda and Nissan End Merger Talks, Remain Independent
- URL: https://www.carexplore.com.au/honda-and-nissan-end-merger-talks-remain-independent/
- Published: 2025-02-14T00:29:27.000Z
- Updated: 2025-02-14T00:29:26.000Z
- Description: Honda and Nissan end merger talks due to structural disagreements. Both companies remain independent but continue collaboration on future technologies.
- Author: Dylan Anderson
- Tags: Car News, Honda, Nissan, mitsubishi

[Honda](https://www.carexplore.com.au/tag/honda/) and [Nissan](https://www.carexplore.com.au/tag/nissan/) have officially called off their merger talks, ending plans to create the world's third-largest automotive group. The decision comes after differences emerged between Japan's second- and third-largest carmakers.

## Key Points

- Honda and Nissan terminate their memorandum of understanding (MOU) signed in December 2024
- Mitsubishi also confirms it will remain independent
- Disagreement over proposed structure led to the breakdown

## Reasons for Termination

The main reason for ending the merger talks was a disagreement over the proposed structure. [Honda](https://www.carexplore.com.au/tag/honda/) suggested changing the plan from a joint holding company to one where [Nissan](https://www.carexplore.com.au/tag/nissan/) would become a subsidiary of [Honda](https://www.carexplore.com.au/tag/honda/) through a share exchange.

[Nissan](https://www.carexplore.com.au/tag/nissan/) stated, "To prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU."

![Honda and Nissan End Merger Talks, Remain Independent](https://www.carexplore.com.au/content/images/2025/02/Nissan-and-Honda-Announce-merger.webp)

## Future Collaboration

Despite the merger's cancellation, [Honda](https://www.carexplore.com.au/tag/honda/), [Nissan](https://www.carexplore.com.au/tag/nissan/), and [Mitsubishi](https://www.carexplore.com.au/tag/mitsubishi/) will continue their collaboration announced in 2024 for future "*intelligence and electrified*" cars. This may include:

- Shared hybrid and electric powertrains
- In-vehicle software development

## Financial Implications

The announcement coincided with the release of both companies' financial results:

- [Honda](https://www.carexplore.com.au/tag/honda/): 7% operating margin
- [Nissan](https://www.carexplore.com.au/tag/nissan/): 0.7% operating margin, with a 414% drop in operating profit compared to 2023

Nissan has revised its outlook for the financial year, expecting a net loss of 80 billion yen (AU$828 million). The company plans to implement "comprehensive turnaround actions" including:

- 2500 global job losses
- Restructuring at manufacturing plants in the US and Thailand

## Moving Forward

As the automotive industry continues to evolve, both [Honda](https://www.carexplore.com.au/tag/honda/) and [Nissan](https://www.carexplore.com.au/tag/nissan/) will face challenges in the competitive electric vehicle market. While the merger is off the table, their ongoing collaboration may still yield benefits in developing new technologies and reducing costs.

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