Nissan and Honda’s proposed $60 billion merger has collapsed due to significant disagreements over control and restructuring. Initially intended as a merger of equals to create one of the world’s largest automakers, the deal faltered when Honda proposed making Nissan a subsidiary, a move that Nissan found unacceptable. Additionally, Honda’s demands for deeper workforce and factory capacity cuts clashed with Nissan’s reluctance to close plants, aiming to preserve jobs and operations.
These conflicts, coupled with Nissan’s slow decision-making and insistence on equal treatment despite its weaker financial position, led to the breakdown of negotiations. The collapse leaves Nissan facing ongoing challenges, including declining sales and potential U.S. tariffs on Mexican-made vehicles, prompting the company to explore other partnerships, such as with Foxconn.
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