The merger discussions between Honda Motor Co. and Nissan Motor Co. have officially collapsed, with tensions running high over the conditions proposed by Honda. A senior Nissan official expressed strong discontent over what he described as “rude” demands made by Honda during the negotiations.
At the core of the disagreement was Honda’s insistence that Nissan become its subsidiary, a condition that ultimately led to the breakdown of the talks. Honda also pushed Nissan to restructure its business and abandon its proprietary hybrid vehicle (HV) system, e-Power, in favour of Honda’s own HV technology. These proposals were perceived as an affront to Nissan’s reputation, particularly given its historical branding as the “Nissan of technology.”
From Honda’s perspective, integrating Nissan’s sales channels with its hybrid system would have improved economies of scale, potentially lowering procurement costs for both companies. However, Nissan, once a leader in electric vehicle (EV) production, has struggled to keep pace with Toyota and Honda in the hybrid segment. A senior Honda official asserted that Honda had a clear advantage over Nissan in HV technology, further fueling tensions.
