A week ago, we reported on rumors that the planned Nissan-Honda merger fell apart after Honda wanted to turn Nissan into a fully-owned subsidiary. These rumors are now officially confirmed as Nissan and Honda moved to terminate their memorandum of understanding regarding the business integration between the two companies.
Nissan and Honda walked away from a $60 billion merger deal meant to unite the two companies and create the world's third carmaker by volume, behind Toyota and Volkswagen. The move came a week after first rumors about failed negotiations surfaced. This puts embattled Nissan in uncharted territory regarding its operations. With dwindling sales, dated technology, and not much money left to survive, Nissan might be the first big carmaker to disappear under increased pressure from Chinese carmakers and EV startups.
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