Nissan ends merger talks with Honda, seeks new partners in tech sector: reports

Struggling Japanese carmaker Nissan has pulled out of merger talks with Honda, bringing an end to discussions that could have created the world’s third-largest car manufacturer.

According to several reports, Nissan president Makoto Uchida informed Honda president Toshihiro Mibe of the decision, concluding months of behind-the-scenes negotiations.

The proposed merger, which also involved Mitsubishi Motors at one point, was first announced in late December. However, disagreements over Nissan’s future role reportedly became a major sticking point.

From the outset, Honda, the larger of the two carmakers, held the dominant position in negotiations. The initial agreement stated that Honda would nominate the CEO and appoint the majority of board members for the merged entity.

As talks progressed, Honda reportedly pushed for Nissan to become a subsidiary, while Nissan preferred a joint holding company structure. Mitsubishi Motors, in which Nissan holds a major stake, declined to join the merger in late January, according to Japanese media reports.

With the Honda deal off the table, Nissan is now understood to be exploring new partnership opportunities, particularly with companies in the technology sector, ideally based in the US.

While global sales have slowed, North America remains Nissan’s most important market, while the broader industry shift toward electrification and automation is driving automakers to seek alliances with tech firms.

Nissan is expected to formalise its withdrawal from merger negotiations at a board meeting, which will take place before its third-quarter earnings announcement next week.