The merger between Japan's second and third largest automakers, Honda and Nissan Motor Co., has been called off.
According to the Nihon Keizai Shimbun (Nikkei) on the 13th (local time), Honda and Nissan Motor Co. each held board meetings that day and officially decided to suspend merger talks. The merger has fallen through just two months after discussions began.
Honda and Nissan announced last December that they would establish a holding company in August 2026, with both corporations becoming subsidiaries of the holding company as part of a management integration plan.
The merger of these corporations was also regarded as "a merger of the century." If the merger plan were realized, it would create the world's third-largest automaker, surpassing Hyundai Motor Group based on 2023 sales figures.
However, the two sides could not narrow their differences during the discussions. Honda proposed making struggling Nissan its subsidiary, which faced strong opposition from those within Nissan who sought an equal merger.