Honda and Nissan were also unable to come to an agreement on a management structure, as well as a valuation for Nissan, and now they’ve agreed to just call the whole thing off. Nissan executives had no desire to oversee what would become a subsidiary of Honda, and few analysts identified much in the way of possible synergy between the two automakers.
“Both companies concluded that, to prioritize speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the [memorandum of understanding],” the companies said in a joint statement.
“Going forward, Nissan and Honda will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles, striving to create new value and maximize the corporate value of both companies,” they said.
Honda just reported a 6 percent increase in its operating profits this past quarter and is unlikely to falter with the failure of this deal. Nissan remains in a precarious position, though. It has lost money for the last two quarters and today announced a turnaround plan that includes cutting 9,000 jobs, closing three factories, and reducing shifts at many more, including here in the US. Rumors continue to swirl about a possible tie-up with China’s Foxconn.
