Honda and Nissan’s merger may be ending before it began
The Honda and Nissan merger was a brief flame, but a bright one. Talks between the two Japanese automakers are reported to have reached a standstill, sending their stocks careening in opposite directions.
The Honda and Nissan combo would have created the world’s third-largest automaker and given rivals like Tesla a run for their money on EVs.
The talks are said to have soured when Nissan vehemently opposed becoming a Honda subsidiary. Honda execs reportedly were not convinced Nissan’s restructuring plan would work.
When Nissan last reported earnings, it said it would cut 9,000 jobs and decrease its global production capacity by 20%. Its profits in the six months through September were down 94% from the year before.
Honda shares were up on the news, while Nissan’s ticked down. Like most other automakers, both companies could be heavily impacted by President Trump's proposed tariffs on goods made in Mexico and Canada.
The talks are said to have soured when Nissan vehemently opposed becoming a Honda subsidiary. Honda execs reportedly were not convinced Nissan’s restructuring plan would work.
When Nissan last reported earnings, it said it would cut 9,000 jobs and decrease its global production capacity by 20%. Its profits in the six months through September were down 94% from the year before.
Honda shares were up on the news, while Nissan’s ticked down. Like most other automakers, both companies could be heavily impacted by President Trump's proposed tariffs on goods made in Mexico and Canada.
