February 13, 2025 – Nissan and Honda are expected to announce the next phase of their complex relationship today, with Reuters reporting that the two automakers may formally abandon their merger plans due to unsuccessful negotiations.
Both companies, which are also set to release their quarterly financial reports, have been impacted by the rapid rise of Chinese electric vehicle makers in the industry and specifically within the Chinese market. Additionally, they face potential tariff risks in the U.S. market.
Nissan, Japan’s third-largest automaker, has withdrawn from the $60 billion merger talks with its larger rival, Honda. The negotiations fell apart as differences between the two parties widened, particularly after Honda proposed that Nissan become its subsidiary.
Currently, Nissan is moving forward with a restructuring plan announced last November. The plan includes laying off 9,000 employees and reducing global production capacity by 20%. However, the specific locations of the affected plants have not been publicly disclosed.
According to informed sources, Nissan intends to further scale down its production capacity in China. The company operates eight factories in China through a joint venture with Dongfeng Motor Corporation and has already suspended production at its Changzhou plant to optimize overall operations.
Prior to announcing the merger negotiations, Nissan and Honda were engaged in separate discussions regarding technical cooperation. It is expected that they will unveil the specifics of their collaboration today.
Following the abandonment of the merger plan, Nissan has expressed openness to collaborating with new partners, with Foxconn emerging as a potential candidate for such cooperation.
