Since signing the MOU, executives from both companies, including their respective chief executive officers, engaged in in-depth discussions regarding market conditions, integration objectives, and potential post-merger management structures. Given the magnitude of such a union, Nissan and Honda also sought input from key stakeholders to ensure a thorough evaluation of the proposal.
A primary point of contention emerged over the structure of the merger. Initially, the agreement envisioned the creation of a joint holding company, with leadership appointments divided between the two firms. However, Honda later proposed an alternative plan, advocating for a more hierarchical structure in which Honda would become the parent company and Nissan its subsidiary through a share exchange.
Ultimately, both companies determined that, given the accelerating pace of electrification and intensifying competition in the global auto industry, a merger could hinder their ability to respond swiftly to market changes. Instead, they concluded that dissolving the MOU would better serve their strategic interests, allowing them to remain agile in an evolving industry.
Despite abandoning formal integration plans, Nissan and Honda reaffirmed their commitment to collaboration in the fields of electrification and intelligent vehicle technology. The companies plan to explore joint initiatives that enhance efficiency, innovation, and long-term competitiveness in an industry increasingly defined by software-driven mobility and sustainability.
The dissolution of the merger talks marks a notable shift in Japan’s automotive sector, where consolidation has been an ongoing theme amid pressures from emerging EV competitors and supply chain disruptions. While a full-scale merger is off the table, the two industry giants will now seek to maximize their corporate value through a more flexible, cooperative approach.