Honda and Nissan cancel their proposed $60 billion merger

Instead, Nissan and Honda will move forward with a “strategic partnership” and collaborate on “intelligence and electrified vehicles.” In a press release, the companies say the termination happened after the CEOs “discussed and considered the surrounding market environment, the objectives of the business integration, and the management strategies and structures post-integration.”

However, sources told Reuters that talks faltered primarily due to Honda’s sudden proposal to structure the merger in a way that would make Nissan a subsidiary. Nissan apparently wanted to stand as an equal, but the company isn’t in a position of strength: its earnings were down more than 90 percent year over year in the middle of 2024, and it had cut its annual operating profit forecast by almost 70 percent. Meanwhile, Honda’s third-quarter profits year over year are up five percent.