Honda and Nissan talks to create the fourth-largest auto group in the world by vehicle sales collapsed after they failed to agree on a multi-billion merger.
According to BBC, the Japenese car-making giants, Nisan and Honda failed to joined forces against Chinese rivals and to create the world's fourth-largest auto group by vehicle sales after Toyota, Volkswagen and Hyundai after the worth $60bn (£48bn) merger talks falls apart on Thursdy, February 13, 2025.
As the deal talks end, the two firms vowed to continue their partnership on the in-house development of electronic vehicles (EVs), batteries, and software along with Mitsubishi.
The three automobile manufacturers said in a statement, “Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles.”
Months before the announcement of merger plans, Nissan and Honda in March 2024 decided to find a strategic partnership for EV.
At that time Honda's chief executive, Toshihiro Mibe, asserted, “The talks started because we believe that we must build up capabilities to fight them, including the current emerging forces, by 2030. Otherwise we will be beaten."
Noatbly, the tie-group would have helped the Japenese companies to compete against Chinese and US rival brands like BYD and Tesla.
