The long-awaited merger between Nissan and Honda is off!
It is a word from Japan's Japanese business, reporting that Nissan has decided to withdraw from a memorandum with rival Honda by pursuing a merger under the holding company.
If the Trump administration cuts or abolishes EV mandates – and if Europe follows, Nissan and all other gas-powered automakers will effectively receive bailouts.
The giant, which was attributed to the merger, was set to become the third largest automaker in the world by sales. Observers now wonder how Nissan drives that turnaround, apparently, because it's off the table.
There's no mistake – Nissan (the third largest car manufacturer in Japan just behind Honda) needs a turnaround.
Nissan is in trouble
The market is generally tough and there is pressure from BYD and other EV participants in China. Nissan also suffered more harder than most people for its overcommitment to EVs. Furthermore, it has not yet fully recovered after the scandal in 2018 when former chairman Carlos Ghosun was arrested and removed.
Nissan also considers it particularly vulnerable to potential tariff threats from US President Donald Trump. Analysts say tariffs on Mexico will hurt Nissan more than Honda or Toyota.
So why did the transactions fall apart? Insider suggests that it is a word: control.
The agreement made Nissan become a subsidiary of Honda, and Nissan aceded.
On that side, Honda (Nissan's market value is almost five times greater) saw it as the only reasonable arrangement.
Honda wants control
Christopher Richter, senior Japan Auto Analyst at Brakerage CLSA, commented on the situation: It appears Honda is leaving. ”
Honda was also increasingly worried about the small rivalry on the turnaround plan, with each insider.
Nissan is in the process of reducing its 9,000 employees and 20% of its global capabilities.
Trump to rescue
What's next?
If the Trump administration cuts or abolishes EV mandates – and if Europe follows, Nissan and all other gas-powered automakers will effectively receive bailouts.
Nissan is 36% owned by French car manufacturer Renault SA. January Some insiders have expressed concern about the transaction, expressed concern about the transaction, and sent representatives to seek its interests.
Mitsubishi Motors Corp. reportedly decided to oppose joining the alliance, and said earlier this week that it would make a final decision if Honda and Nissan reached an agreement later this month.
Honda stocks rushed over 8% on the news, but Nissan stocks fell nearly 5%. Renault's shares fell 3.4%.
Nissan is 36% owned by French car manufacturer Renault SA. January Some insiders have expressed concern about the transaction, expressed concern about the transaction, and sent representatives to seek its interests.
Mitsubishi Motors Corp. reportedly decided to oppose joining the alliance, and said earlier this week that it would make a final decision if Honda and Nissan reached an agreement later this month.
Honda stocks rushed over 8% on the news, but Nissan stocks fell nearly 5%. Renault's shares fell 3.4%.
Now, the question is, what will happen at Nissan? It's in a downward spiral, with hungry investors like Foxconn wanting to take ownership in the company. In other words, this story is not over.
