Japanese auto giants Honda and Nissan have called off their proposed merger, ending talks that could have created the world’s third-largest automaker.
The companies announced the decision earlier today, stating that they could not reach an agreement on the structure of their partnership. Honda had reportedly proposed making Nissan a subsidiary, a move that Nissan resisted.
The merger was seen as a strategy to compete with Tesla and Chinese electric vehicle manufacturers. Despite the failed talks, both firms will continue their strategic partnership with Mitsubishi Motors to enhance collaboration in the EV market.
Meanwhile, Nissan expects an annual loss of $518 million due to declining sales, while Honda posted a nine-month net profit of $5.2 billion. Analysts suggest both automakers may need alternative partnerships to stay competitive.
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