Multi-billion dollar merger talks between Honda and Nissan collapse
Honda and Nissan announced that they will end negotiations on the merger, adding that they will continue to engage in partnerships on electric vehicles.
The Japanese automaker, together with junior partner Mitsubishi, aims to combine its businesses to fight back against rival companies, especially in China.
“Looking forward, the three companies will collaborate within the framework of strategic partnerships targeting the era of intelligence and electric vehicles,” the companies said in a statement Thursday.
The team will create a new automotive industry giant with Toyota, Volkswagen, General Motors and Ford.
It will also offer Nissan, Japan’s second-largest auto company for some time, with years of slowing sales and turmoil involving its top executives, crucial relief.
In November, Nissan’s surprise shareholders planned to lay off thousands of workers to address the decline in sales in China and the United States.
The growing electric vehicle market is increasingly dominated by Chinese manufacturers such as Byd.
This increased competition has left many world-leading automakers struggling to compete.
In March last year, Nissan and Honda had agreed to explore a strategic partnership for electric vehicles months before announcing the merger.
“The negotiations began because we believe we must build the ability to fight them, including the current emerging forces, by 2030,” Honda CEO Toshihiro Mibe said. “Otherwise we will be beaten up.” .”
At the same time, Taiwan’s technology giant Foxconn has become a possible investor for Nissan.
“If the cooperation requires it (to buy Nissan shares), we will take it into consideration,” Foxconn chairman Young Liu told reporters on Wednesday.
