Skip advert
Advertisement

Honda and Nissan merger collapses

It was hoped the merger would better equip the two firms on future EVs and software-defined vehicles

Honda ZR-V and Nissan Qashqai - front tracking

Honda and Nissan have agreed to terminate the Memorandum of Understanding (MOU) regarding a business merger which would have seen the two companies become the third-largest automotive manufacturer in the world. 

The proposed deal, which would also have included Mitsubishi Motors, has now fallen apart – although Honda and Nissan both said in respective statements there will still be a “strategic partnership aimed at the era of intelligence and electrified vehicles”. 

Advertisement - Article continues below

A definitive agreement was expected to be reached in June 2025, with the new combined force listed on the Tokyo Stock Exchange ahead of a share transfer and launch of the new joint company in August 2026. 

Both firms cited the same reasons for the merger failing to materialise, stating: “Various options were considered regarding the structure of the business integration. Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the MOU, to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange.” 

However, it’s clear now that an agreeable solution could not be reached with both companies needing to prioritise “speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification”. 

It remains to be seen if the afore-mentioned “strategic partnership”, with EVs at its forefront, will give Honda and Nissan the tools to compete with the threat of a booming Chinese car market and slower than anticipated consumer demand for battery-powered vehicles.

Globally the two companies sold 3.7 million and 3.4 million vehicles respectively in 2023 – making them the second and third-largest automotive companies in Japan, after Toyota. However, Nissan lost 16 per cent of its sales in China and Honda 10 per cent in the past year.

Renault Group, which Nissan is part of an alliance with, is yet to comment on the failed merger.

Now take a look at the best electric cars

Skip advert
Advertisement
Senior news reporter

A keen petrol-head, Alastair Crooks has a degree in journalism and worked as a car salesman for a variety of manufacturers before joining Auto Express in Spring 2019 as a Content Editor. Now, as our senior news reporter, his daily duties involve tracking down the latest news and writing reviews.

Find a car with the experts

Skip advert
Advertisement

Recommended

Best April Fools' Day jokes by car companies 2025
Best April Fools' day jokes 2025

Best April Fools' Day jokes by car companies 2025

We round up this year’s best car-related April Fools’ jokes, along with a few of the more famous japes from years gone by
Features
1 Apr 2025
Confirmed: Renault Twingo-based Nissan EV incoming
Nissan A-segment EV

Confirmed: Renault Twingo-based Nissan EV incoming

Online investors’ call confirms Nissan will build a “derivative” of the Renault Twingo from 2026
News
31 Mar 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
Best new cars coming soon - header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
20 Feb 2025
The best ever Japanese kei cars: lightweight, lovable and back in vogue
Best kei cars - header image

The best ever Japanese kei cars: lightweight, lovable and back in vogue

Car weight has become a big issue with the rise of EVs, but Japanese kei cars have had the problem solved for years. These are the best…
Best cars & vans
30 Jan 2025

Most Popular

Car Deal of the Day: BYD Seal – signed, sealed and delivered for less than £305 a month
BYD Seal - front cornering

Car Deal of the Day: BYD Seal – signed, sealed and delivered for less than £305 a month

The BYD Seal is a Tesla Model 3 rival, and a very good one at that. It’s our Deal of the Day for 31 March
News
31 Mar 2025
Car Deal of the Day: Only £245 per month for the 60mpg Renault Rafale coupé-SUV
Renault Rafale - front cornering

Car Deal of the Day: Only £245 per month for the 60mpg Renault Rafale coupé-SUV

Sleekly styled SUV comes with hybrid power and a competitive monthly price in our Deal of the Day for 29 March
News
29 Mar 2025
Car Deal of the Day: Hybrid-powered Peugeot 3008 for £208 per month
Peugeot 3008 Hybrid - front tracking

Car Deal of the Day: Hybrid-powered Peugeot 3008 for £208 per month

Peugeot’s sharply styled and hybrid-powered family car can be leased for as little as £208 per month in this deal
News
30 Mar 2025