Japanese Carmakers Scotch That Much Ballyhooed Merger

Japanese automakers Honda, Nissan, and Mitsubishi said on Thursday they're ending talks on business integration. Nissan CEO Makoto Uchida said the talks had changed focus from setting up a joint holding company to making Nissan into a subsidiary of Honda. "The intent was to join forces to win in the global competition, but this was not going to realize Nissan's potential, so I could not accept it," he told reporters, per the AP. He said that Nissan was going to aim for a turnaround without Honda instead. Honda CEO Toshihiro Mibe, meanwhile, said in a separate news conference that Honda had suggested a stock swap to speed up decision-making. "I am really disappointed," Mibe told reporters. "I felt the potential was great, but I also knew actions that would bring pain were necessary to realize that."

• From the start, the effort had analysts puzzled as to the advantages for any of the companies, as their model lineups and strengths overlap in an industry shaken by the arrival of powerful newcomers like Tesla and BYD, as well as the move to electrification. In recent weeks, Japanese media had various reports about the talks breaking down, citing unidentified sources. Some said Nissan balked at becoming a minor player in the partnership with Honda.
• Honda is in far better financial shape and was to take the lead in the joint executive team. Honda reported Thursday that its April-December 2024 profits declined 7%, to $5 billion. Nissan reported that its April-December profit crashed to $33 million, from $2.1 billion last year.
• Honda Motor Co. and Nissan Motor Corp. had announced in December they were going to hold talks to set up a joint holding company by August. Mitsubishi Motors Corp. had said it was considering joining that group. The automakers have now agreed to end their agreement on considering a structure for a collaboration, a joint statement said. The three automakers will continue to work together on electric vehicles and smart cars, such as autonomous driving, they said Thursday.

(More foreign automakers stories.)