--- title: "Why the Honda-Nissan Merger Collapsed and What Could Happen Next" date: "2025-02-12" modified: "2025-02-12" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/why-the-honda-nissan-merger-collapsed-and-what-could-happen-next" categories: - "News" - "News by Brand" - "Nissan News" --- # Why the Honda-Nissan Merger Collapsed and What Could Happen Next ![Honda, Nissan, and Mitsubishi CEOs speak on stage during a press conference about their planned merger in December 2024.]() *\Honda\* The idea of a union between [Honda]() and [Nissan]() appears [well and truly dead now](). The torrid affair didn't even last two months, and it's notably left Nissan back at square one, desperately looking for a partner to keep itself afloat. Or perhaps *not* so desperately, as new reports have given us insight into how the struggling carmaker's pride may have scuttled its deal with Honda, now leaving it vulnerable to influence from outside the auto industry. Multiple sources told *[Reuters]()* this week that talks between the two companies began to disintegrate when Honda determined that Nissan wasn't doing enough—or moving quickly enough—to take vital steps to ensure its future. Back in November, Nissan projected a staggering 70% reduction in operating profit for 2024. While 9,000 jobs were cut and CEO Makoto Uchida pledged to give up half his salary, the manufacturer's supposed refusal to go further or close a number of plants was evidently viewed by Honda as an unwillingness to compromise. Meanwhile, Nissan feared that further downsizing would tank whatever value it had in the arrangement. It seems that in January, Honda concluded that the best path forward, given Nissan's predicament and unsatisfactory response, was that of an acquisition rather than a merger. The concept of Nissan becoming a subsidiary of Honda was untenable to the former; it wasn't a part of the plan a month earlier, and Nissan's top brass was reportedly deeply offended. Sources told *Reuters* that Honda's proposal was considered "an affront to the dignity of Nissan, the older automaker." That brings us to February. Last week, Uchida reportedly met with Honda CEO Toshihiro Mibe to officially end negotiations. Remember, electronics manufacturing giant Foxconn, best known for building iPhones for Apple, [had been pursuing Nissan last year]() up until the prospective deal with Honda became public. Since that arrangement is now off the table, Foxconn is talking about Nissan again, though its tune is slightly different than what was reported late last year. "Purchasing its shares is not our aim; our aim is cooperation," Foxconn Chairman Young Liu [told media in Taiwan on Wednesday](). It's worth noting that this is the first time Foxconn has made any public remarks about its intentions toward Nissan. And Nissan appears to be willing to hear what Foxconn has to say, according to *[Reuters]()*. The iPhone maker's electric vehicle wing is run by Jun Seki, a former Nissan executive who had been in the running to helm the automaker before departing in 2023. Renault is also guaranteed to play a role in whatever is next for Nissan, as it holds a 36% stake in its longtime ally. The French automaker has expressed an intent to reduce that to 15%, as the brands united under former CEO Carlos Ghosn seek to disentangle themselves. If Foxconn—or any other interested party for that matter—decides that mere cooperation isn't enough, they'll have to go through Renault. ![EDMONTON, CANADA - FEBRUARY 02: Nissan logo seen outside an Nissan dealership in Edmonton, AB, Canada, on February 02, 2025. In response to U.S. tariffs on Canadian imports and oil, Prime Minister Justin Trudeau announced retaliatory countermeasures on American goods. (Photo by Artur Widak/NurPhoto via Getty Images)]() **Artur Widak/NurPhoto via Getty Images** Amid all of this, there have been rumblings (albeit unconfirmed) that the Japanese government acted as a guiding hand to bring Honda and Nissan together, hoping to strengthen its automotive sector against encroaching competition out of China. "This is coordinated by the government to build a competitive automaking industry," one analyst told *[Bloomberg]()* way back in August, when the deal between the two parties only concerned EV development. Given that, one would imagine the recent developments between the companies have disappointed Tokyo, but we don't know what the government would prefer for Nissan's future at the moment. In calling off the deal. Nissan appears to only be willing to accept a helping hand if it doesn't cede control in the process. Despite recent events, it's still a well-established brand, and that counts for a lot. But age and name recognition alone can't save any automaker, especially not today, when the entire business of [building]() and [selling cars]() is being uprooted. *Got a tip? Send it to tips@thedrive.com* ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()