Honda, Nissan, and Mitsubishi Call Off Merger, but Continue Strategic Partnership

Japanese automakers Honda, Nissan, and Mitsubishi have decided to end discussions about a potential merger. Initially, Honda and Nissan had agreed to explore creating a joint holding company, with Mitsubishi considering joining the partnership. However, despite these initial plans, the three companies announced Thursday that they would no longer move forward with the merger talks.

While the merger discussions have fallen apart, the automakers have emphasized that they will continue to work together on key projects, particularly in the areas of electric vehicles (EVs) and smart car technologies, including autonomous driving.

This decision comes after reports indicated some internal disagreements, particularly from Nissan, which appeared hesitant to take a secondary role in the partnership, as Honda had been positioned to lead. Honda, in stronger financial health, was set to take charge of the joint executive team, while Nissan had been struggling with financial losses. In fact, Nissan reported a significant loss in the July-September quarter, prompting job cuts and a drastic pay cut for its CEO, Makoto Uchida.

Though the merger is off, the companies plan to continue collaborating on developing cutting-edge technology and addressing the growing demand for electric vehicles in the competitive auto industry.