In a move that marks the end of months-long merger negotiations, Japanese automakers Honda, Nissan, and Mitsubishi have announced they will terminate their talks. The three brands signed a memorandum of understanding (MOU) in December to explore a potential partnership, but ultimately decided not to pursue it.
Despite the failed talks, the companies have agreed to continue collaborating on software and electrified vehicles. In a statement released last week, the automakers said they would abide by an earlier agreement to work together on these areas.
The dissolution of the MOU comes after rumors emerged that negotiations were turning sour between Honda and Nissan. Industry insiders point to the two companies’ differing perspectives as a major factor in the talks’ demise. Honda was reportedly seeking to acquire Nissan, but the proposal was allegedly undervalued by Nissan’s executives.
As a result of the collapse, plans for Honda to enter the full-size SUV market through a joint product with Nissan are now uncertain. The partnership would have created the world’s third-largest automaker and allowed the companies to share development costs.
The failed merger talks mark the end of months-long speculation about the potential collaboration between these Japanese giants. The decision leaves open the possibility for future partnerships, but for now, the three companies will focus on their individual projects and initiatives.
Source: https://www.caranddriver.com/news/a63784353/honda-nissan-partnership-talks-ended