Nissan Will Conclude Discussions on Honda Merger, Reconsidering Foxconn | Carscoops

      Nissan has reportedly pulled out of merger discussions with Honda and is now on the lookout for new partners.

      According to sources, the CEO of Nissan conveyed to Honda's CEO his decision to end the merger talks.

      The proposed $60 billion merger between Honda and Nissan would have formed the world’s third-largest automaker.

      Nissan is now actively seeking new collaboration opportunities, with Foxconn, the company behind the iPhone, emerging as a significant contender.

      Nissan has apparently withdrawn from merger negotiations with Honda due to a lack of agreement on terms. The automaker is now exploring options for new partnerships, with Foxconn—the Taiwanese tech firm renowned for iPhone assembly—as a potential candidate.

      Initially, Honda and Nissan had signed a memorandum of understanding in December 2024, setting the stage for a possible merger and intending to reveal further details by mid-February. The plan included forming a joint venture by August 2026. However, reports indicate that discussions fell apart when Nissan expressed concerns about Honda’s proposal for it to become essentially a subsidiary, which was not well-received by Nissan's leadership.

      Nissan’s Decision

      Japanese news source Nikkei reports that Nissan CEO Makoto Uchida personally communicated the decision to Honda CEO Toshihiro Mibe during a meeting in Tokyo on Thursday morning. In addition, Kyodo News mentioned that Nissan’s board had reached a final decision a day earlier during a Wednesday meeting.

      Despite the end of full merger discussions, Honda does not dismiss the possibility of future collaboration with Nissan, albeit on a smaller scale. Insiders suggest that both companies may still collaborate on electric vehicle software and battery innovation, although specific details are unclear.

      In response to the situation, a spokesperson for Renault stated that the company would “vigorously defend the interests of the Renault Group and its stakeholders.” While this raises questions regarding Renault’s involvement, neither Nissan nor Honda has released official statements yet. Currently, both companies are maintaining their plan to communicate the outcome of their discussions in mid-February.

      Seeking a New Partner

      With the $60 billion merger seemingly off the table, Nissan is exploring other avenues to maintain competitiveness, particularly in light of recent financial challenges. Reuters reports, citing two unnamed sources, that the automaker is open to collaborating with technology firms, with Foxconn becoming a serious candidate.

      Foxconn reportedly showed interest in acquiring Nissan back in December, prior to the merger discussions with Honda. Although Nissan initially turned down the offer, sources indicate that the company is contemplating a partnership with the Taiwanese electronics giant.

      This wouldn’t mark Foxconn’s first venture into the electric vehicle arena. The company already operates an EV subsidiary named Foxtron, led by Jun Seki, a former senior Nissan executive and potential CEO candidate. A collaboration between Nissan and Foxconn could provide Nissan with a much-needed financial boost, especially following job cuts of 9,000 and a 20% reduction in production. For Foxconn, a deal with Nissan could accelerate its goals in the automotive industry.