Nissan and Honda have decided to pursue a “strategic partnership” focusing on advancements in “intelligent and electrified vehicles.” According to a recent press release, the decision to move away from an initial merger plan followed discussions between the CEOs, who examined the current market landscape, integration goals, and management approaches for the future.

However, as reported by Reuters, negotiations faced challenges largely due to Honda’s unexpected suggestion to configure the merger such that Nissan would become a subsidiary. Nissan expressed a preference for an equal partnership, but recent financial difficulties have hindered its position. In mid-2024, the company experienced a staggering decline of over 90 percent in earnings year-on-year, prompting a nearly 70 percent reduction in its annual operating profit forecast. In contrast, Honda reported a year-on-year profit increase of five percent for the third quarter.

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