The ongoing saga of the Nissan–Honda merger has taken another unexpected turn. After months of speculations and discussions, new reports reveal that Nissan looks to replace Honda from this collaboration tale.
While both companies have kept quiet about this development, international media sources suggest that Nissan CEO Makoto Uchida has already informed Honda’s CEO, Toshihiro Mibe, that the much-anticipated merger discussions are being called off.
According to Bloomberg, Nissan is now looking to partner with a different company after its failed attempts with Honda. Sources close to the situation claim Nissan is now focused on teaming up with a tech giant based in the United States, although details remain under wraps for now.
Foxconn’s Interest
Interestingly, Foxconn, the Taiwanese tech company best known for manufacturing Apple’s iPhones, was reportedly interested in acquiring part of Renault’s stake in Nissan.
Renault, which holds a 36% share in Nissan, has long been the largest stakeholder in the company. However, these discussions were paused when it became clear that Nissan preferred to focus on its talks with Honda. Still, Foxconn has not given up on the idea and is likely to remain a potential partner in the future.
Meanwhile, the situation with Honda continues to unfold. While the merger talks initially aimed at creating a stronger global competitor, reports have suggested that Honda wants Nissan to become a subsidiary.
The urgency of the situation is evident, as Nissan faces financial pressure. In November 2024, the Financial Times reported that Nissan’s executives believe the company has a limited window of 12 to 14 months to turn things around.
To make matters worse, Nissan recently announced plans to cut 9,000 jobs and reduce its manufacturing capacity by 20%. With these significant changes underway, the company is actively seeking a way forward.
What Next For Nissan?
In the coming days, Nissan is expected to officially announce its withdrawal from the Memorandum of Understanding with Honda.
If both companies agree to part ways without creating a joint holding company, they would avoid a costly cancellation fee of approximately ¥100 billion (around $655 million). As the clock ticks, Nissan’s next moves will be crucial in shaping its future.
