Honda and Nissan have officially ended their merger discussions, confirming that their plan to form what would have been the world’s third-largest car group has fallen apart. The deal collapsed just under two months after being announced.

Originally, both automakers planned to share details of their partnership by the end of January but later pushed it to mid-February. Although the timeline stayed on track, the final outcome saw both companies walking away.

Insider reports suggest that disagreements over control were a major issue. Honda, being nearly three times more valuable than Nissan and having a bigger global presence, wanted to take charge of key business areas. However, Nissan’s leadership was unhappy with this arrangement.



Back in December, Honda and Nissan—Japan’s second- and third-largest car brands—announced their goal to finalize merger negotiations by mid-2025 and set up a holding company in 2026. Mitsubishi was also involved initially but later backed out.

The merger was intended to help both companies cut costs by working together on electric cars and software, making them stronger competitors against industry giants like Tesla and BYD. At the time, Honda made it clear that for the deal to move forward, Nissan, which has faced financial struggles, needed to improve its recovery efforts.

In November, Nissan announced plans to cut about 9,000 jobs worldwide and reduce its production capacity by 20% to lower costs. However, Honda reportedly remained doubtful that these steps would be enough to turn Nissan’s financial situation around.

By January, Mitsubishi officially withdrew from the talks, saying the partnership didn’t align with its business strategy. More recently, Honda suggested making Nissan its subsidiary, fearing that Nissan’s slow progress could harm the merger’s success. This suggestion was strongly rejected by Nissan’s board, leading to the complete breakdown of the deal.