Nissan and Honda break off fusion talks
Nissan and Honda break off fusion talks
Japanese automobile manufacturers Nissan and Honda have set the talks about a merger that would have led to the creation of the third largest automobile manufacturer in the world. In a Expression on Thursday, Nissan explained that both companies had decided together with their partner Mitsubishi Motors that the memorandum of Ofum Understanding to end.
future collaboration between Nissan and Honda
Nissan added: "For the future, Nissan and Honda will work together as part of a strategic partnership that aims at the era of intelligent and electrified vehicles in order to create new value and maximize the company value of both companies."
background of the failed conversations
In December, Nissan and Honda to start discussions about a possible fusion to start to strengthen their competitiveness towards increasing competition from Chinese automobile manufacturers such as BYD. However, the talks were stalled just a few weeks after their start.
restructuring of the merger considered
During the negotiations, various options for the structure of the intended merger were examined. Honda proposed to change the structure of a common holding company, as originally agreed, and instead to position Honda as a parent company and Nissan as a subsidiary through an exchange of stocks. Ultimately, both companies came to the conclusion that it was best to "end" the conversations.Nissan's financial difficulties
Nissan has struggled with considerable financial difficulties since the collapse of his long -term alliance with the French automobile manufacturer Renault. Some analysts have speculated that Nissan could already face bankruptcy in 2026, as a large amount of debt was due at that time. In the period from six months to September 2023, Nissan's profits fell by 94 % compared to the previous year, while the company recorded losses in the automotive sector.
response to the financial crisis
In response to financial challenges, Nissan announced thatannounced that the production capacity reduced by 20 % and at the same time released 9,000 employees. In addition, the forecast for the annual surplus was corrected by 70 % downwards.
restructuring of the partnership with Renault
In January 2023,Nissan and Renault agreed to restructure their partnership, with Renault reducing its share of Nissan to 15 %. This step was an important milestone in the two decades-old alliance. Since 1999, the two companies, together with the partner Mitsubishi Motors, have been working closely to share production and technology advantages and save billions of dollars every year.
The alliance, however, fell after the surprising fall of the former boss carlos ghosn Fear in 2018.
This story was updated with additional information and context.
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