Thu Feb 13 08:59:08 UTC 2025: ## Honda and Nissan Scrap Merger Talks, Focusing on EV Collaboration
**TOKYO** – Honda and Nissan have officially called off merger talks, ending plans to create the world’s third-largest automaker. The companies announced Thursday that they had terminated their memorandum of understanding, signed last December, citing irreconcilable differences regarding the proposed structure of the combined entity.
While the potential merger, valued at approximately $60 billion, was intended to bolster their competitiveness against electric vehicle giants like Tesla and rapidly growing Chinese manufacturers, Honda’s proposal to make Nissan a subsidiary proved a major sticking point. Sources indicated that Nissan ultimately rejected this proposal.
Despite the failed merger, both companies reaffirmed their commitment to collaborating on electric vehicle technology and other strategic initiatives. They will continue to partner within a framework of strategic alliance focused on the future of intelligent and electrified vehicles.
The decision leaves Nissan open to exploring alternative partnerships. Taiwanese electronics giant Foxconn has emerged as a potential partner, with its chairman expressing interest in potential collaboration and investment. The abandoned merger comes as both Honda and Nissan face increased competition from Chinese EV makers and navigate potential US tariffs. Mitsubishi Motors, initially considered as part of the three-way merger, is not expected to be involved in future collaborations.
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