Honda, Nissan, Mitsubishi End Merger Talks, Continue EV Collaboration

Nissan and Honda have officially terminated their discussions regarding a potential merger, which was initiated through a memorandum of understanding signed in December. The decision was influenced by differing views on the merger structure, with Honda proposing a hierarchical model that Nissan rejected. Both companies recognized that a merger could impede their ability to adapt to rapid changes in the automotive market, particularly with the rise of electric vehicles and competition from new entrants like Tesla and BYD. Despite ending merger talks, Nissan, Honda, and Mitsubishi affirmed their commitment to collaborate on electric vehicle development and other strategic partnerships. Nissan is now focused on restructuring efforts, including plans to cut jobs and streamline operations due to declining sales and profits. The dissolution of these talks underscores the challenges faced by traditional automakers in an evolving industry landscape.