Nissan is walking away from a deal that could have reshaped the auto industry. Talks with Honda about a £46 billion merger have collapsed, with sources saying disagreements over control got in the way. Instead of creating the world’s third-largest carmaker, Nissan is now looking for a new partner. And this time, it might not be another automaker. A shift toward tech is on the table. Taiwan’s Foxconn—the company that builds iPhones for Apple—has been floated as a potential partner. Some board members are open to the idea, but Nissan reportedly has its sights set on a U.S. tech firm instead. CEO Makoto Uchida has already informed Honda’s Toshihiro Mibe that negotiations are dead, according to Reuters. An official statement is expected soon, but Nissan isn’t offering any details yet. Foxconn, though, isn’t giving up. It had previously explored buying part of Renault’s 36% stake in Nissan but paused when Honda entered the picture. Now that Nissan is back on the market for a partner, Foxconn could try again. Whether Nissan leans toward Silicon Valley or stays closer to home, one thing is clear: it no longer sees its future in a traditional automaker tie-up. Read More Jay Leno Drives the Very Last Mercedes 300 SL Gullwing Honda’s Power Move Pushes Nissan to Reject Merger The two companies had been working on a merger that would bring them under a jointly owned holding company, giving Nissan room to keep its brand and some control. That changed fast. Honda has now made it clear it wants full ownership. The latest proposal was delivered as a "take it or leave it" offer, leaving little room for discussion. Tensions had already been simmering over how much each company would own and how their assets would be valued. Now, with Honda’s power play, those cracks have split wide open. Some at Nissan see this as more than just a negotiation tactic. One insider called Honda’s move “aggressive” and suggested the company might be looking for an excuse to walk away. If that’s the case, it wouldn’t be the first time a high-profile merger collapsed over control struggles. From the start, Nissan had pitched this as a "merger of equals." But to those watching from the sidelines—especially Renault, Nissan’s longtime ally—it never looked that way. Stock Moves Signal Market Doubt Over Nissan-Honda Deal Investors aren’t convinced this merger is happening. Nissan’s stock shot up 7.3% on Thursday, while Honda’s slid 4%, a clear sign that markets see Nissan coming out ahead if the deal collapses. The merger was supposed to give both companies a stronger foothold in the EV race. Nissan and Honda may both be Japanese auto giants, but they’re not equals. Honda is five times bigger by market value, while Nissan has been struggling with weak profits and aging models—especially in North America, where it’s relying on discounts to keep sales up. Read More This Is the 2025 Mercedes-AMG GT 63 S E Performance, and It Just Got Pricier That imbalance made negotiations tough. Todd Duvick, an auto analyst at CreditSights, says Nissan’s weak stock price and poor financial outlook gave it little leverage. He believes Honda might push for a takeover instead of a merger, which could mean major job cuts at Nissan, particularly at the top. And then there’s Renault. The French automaker still holds a big stake in Nissan, a leftover from the Renault-Nissan-Mitsubishi alliance led by Carlos Ghosn—the former CEO who fled to Lebanon after his arrest in Japan. Nissan’s been a mess ever since, with years of leadership struggles and internal fights. The company is already trying to turn things around. CEO Makoto Uchida announced in November that Nissan will cut 9,000 jobs worldwide as part of its restructuring efforts. Meanwhile, both Nissan and Honda are set to release earnings on 13 February. Source: Reuters
