Nissan and Honda officially call it quits 

It’s official, Honda and Nissan have called off their marriage of convenience.

In a joint statement issued overnight, both Japanese brands said the strategic merger would not be going ahead given the volatility of the current marketplace, differing objectives of the business integration, and the management strategies and structures that would be in place post-merger. 

“Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the [December] MOU, to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange,” the statement reads. 

“As a result of these discussions, both companies concluded that, to prioritise 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 MOU.”  

Mitsubishi also issued a short statement confirming its own exit from discussions, something that was later acknowledged by Honda in a separate but identical comment. 

But while the wedding may be off, all three brands have confirmed they will “collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles” as per a previous memorandum of understanding signed in August. 

Nissan meantime has wasted no time in detailing its rebound plan from both the abandoned merger and its ongoing financial strife as it tries to stay afloat. 

The immediate goal is to try and reduce total costs by 400 billion yen (AU$4.14b) in fiscal year 2026, something that will reduce its break-even point from 3.1 million units to 2.5 million (globally) and enable a stable operating margin of four per cent. 

Of that 400 billion yen, 300 billion will be saved through a combination of lay-offs (9000 direct and indirect staff), operational streamlining, the consolidation of production lines and overall reduction in global output from five million units to four million per annum. 

Another 100 billion yen will be saved through variable cost saving measures while topline growth will be driven by “a suite of products equipped with differentiated technologies tailored to global customer needs”.

A raft of new electrified vehicles (PHEV and EV) is on the way, as are more ‘intelligent vehicles’ fitted with advanced driver aids and intelligent features like virtual cockpits, likely with augmented reality. 

To cut down on bureaucracy and speed up decision-making, some 20 per cent of the company’s management positions will be culled to create a “single-layer, non-officer framework” with no defined regional borders. 

A study of its market presence in certain regions will be undertaken to ascertain the validity of remaining in said markets and how best to evolve in the most profitable ones.

Nissan will also look to accelerate its collaborative projects with its Alliance partners (Mitsubishi, Renault), Honda, and others.

The brand’s Oceanic managing director, Andrew Humberstone, recently told carsales Nissan was “here to stay” in Australia irrespective of how the previously turbulent merger negotiations with Honda panned out.