JAPANESE CAR MANUFACTURERS HONDA AND NISSAN CALL OFF MERGER
As expected, the Japanese car manufacturers Honda and Nissan have ended the merger talks they started in December, the companies announced on Thursday in Tokyo.
Instead, the firms plan to collaborate with Mitsubishi Motors in the strategic partnership that has been planned since August of last year, aimed at the digitalization and electrification of vehicles, they said.
A merger with Honda had become increasingly unlikely over the past weeks, with several media outlets reporting on this.
The Japanese car manufacturers had hoped together to defend themselves better against weakening business in China and growing competition in the expanding electric car market.
Japanese car manufacturers have fallen behind globally in electric car sales. Tesla and the Chinese manufacturer BYD are putting pressure on the Japanese players in the United States and China. Nissan is particularly struggling in the Chinese market, where sales have significantly decreased.
One topic of discussion was that Nissan could, as part of a joint venture, come under Honda's umbrella, which, however, failed.
The companies stated that they have decided to focus on faster decision-making and implementation processes in the rapidly changing market.
Honda and Nissan are Japan's second and third-largest car manufacturers after Toyota.
