Honda-Nissan $60B Merger Ends, Focus Shifts to EVs

Honda and Nissan have decided to terminate their talks on a potential $60 billion merger that would have included Mitsubishi, opting instead to continue their strategic partnership focused on electric vehicles and smart technology. The decision followed board meetings where disagreements over the merger's structure, particularly Honda's proposal to make Nissan a subsidiary, led to the breakdown in negotiations. Nissan, facing financial difficulties with declining sales and profits, viewed the merger as critical to its survival, but it could not accept becoming a minor partner in the deal. Honda, in a stronger financial position, maintained its annual profit guidance and will continue to seek other strategic opportunities. Reports suggest that Taiwanese electronics giant Foxconn may be interested in investing in Nissan, while Nissan aims to develop a turnaround plan independently. Analysts had been skeptical of the merger's benefits due to overlapping business models and increasing competition from emerging automakers like Tesla and BYD.