Honda, Mitsubishi, Nissan Terminate Merger MoU

It’s official. Honda, Nissan and Mitsubishi have agreed to terminate their Memorandum of understanding which was signed in December 2024. The $60 billion merger could have propelled the two companies to become the fourth largest automobile manufacturer, behind Toyota, Volkswagen, and Hyundai.

While the merger talks are off the table now, both Honda and Nissan have said that the companies will look to collaborate and have strategic partnerships around EVs. In a statement issued by Honda, it said, “Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles. This framework was established with the MOU signed on August 1 last year, striving to create new value and maximize the corporate value of each company.”

Nissan, however, was in dire need of this merger. Now, the company will have to take steps to ensure a leaner operation. The company has already announced that it will take several steps to get there. A statement issued by the company stated that it “plans to reduce 2,500 global indirect employees by streamlining operations, implementing hiring reductions, and accelerating voluntary separation programs. Nissan will achieve reductions in unit labour costs with additional measures including expansion of shared service centres by 1,000 positions and prioritized fixed marketing expenses.”

Nissan president and CEO Makoto Uchida said, "Nissan is fully committed to its turnaround actions, aiming to reduce costs by around 400 billion yen. We are dedicated to achieving a more efficient cost structure while driving top-line growth through enhanced competitive products that cater to the diverse needs of our customers.