It’s official. After weeks of speculation, Honda and Nissan have confirmed that the merger among the two automakers will not push through. Is it really a surprise at this point, though?
That said, the two won’t totally abandon plans working with each other. While the merger plans are off the table, there is still mention of some collaboration. Mitsubishi, on the other hand, has yet to mention anything about the matter.
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Per the joint statement, ‘Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles.’
Honda’s release was brief, but Nissan had a couple more things to say about the collapse of the Memoradum of Understanding. The latter pointed out that “Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer.”
Nissan didn’t say directly that Honda wanted to turn the company into a subsidiary. Instead, it highlighted the greater need for speedier decision-making and execution of management measures. Nissan noted that both parties agreed that the best course of action is to terminate the MoU.
With that, Nissan’s fate in the long term is yet to be determined. That said, there is one company that has been vocal for plans to collaborate with the Japanese automaker. That company is Foxconn, and now might be its time to step in.
