- Although the Honda–Nissan merger failed, the two companies are still interested in collaborating.
- Honda CEO and President Toshihiro Mibe says they are “close to an announcement.”
- Both are working on several projects, but there are no plans to merge.
Honda and Nissan made headlines in December 2024 when they signed a memorandum of understanding (MOU) to explore the possibility of a merger. However, by February of the following year, both Japanese brands had already decided not to proceed with a single new holding company. Why? reuters It was reported at the time that, instead of a merger of equals as initially reported, Honda wanted to take control and turn Nissan into a subsidiary. The deal also fell apart because Honda insisted on drastic job cuts and plant closures, which was met with resistance from Nissan.
Although merger talks ended abruptly just months after the announcement, it didn’t take long for reports to emerge about a different type of tie-up between the two companies. Now, Honda’s CEO and president has confirmed that a deal with Nissan is close. Nikkei Asia Toshihiro Mibe told shareholders that talks between the two Japanese brands are “far advanced, with some aspects close to announcement.”
Although he did not elaborate on what the partnership will entail, Honda’s chief executive said the companies are “moving forward with a win-win relationship with each project.” From that statement, it is clear that the two do not want to merge, but rather collaborate in specific areas of their businesses. Whether this means joint vehicle development, shared production capacity, or something else is unclear.
Honda CEO and President Toshihiro Mibe
Photo by: Honda
Honda and Nissan may share ECU
There are reports that Honda, Nissan and Mitsubishi are working together to standardize electronic control units (ECUs) for the next generation models. These shared ECUs will be used across the three brands in vehicles arriving at the end of the decade. Although not all details have been finalized, it is expected that the ECU will be used in hybrid and electric models.
Renault is also likely to have a stake in the deal, as it still holds a 15% voting stake in Nissan, down from 43% in 2023. The new talks come as Nissan carries out a major cost-cutting program, including closing seven factories, two design studios and laying off about 20,000 workers. As part of its RE:Nissan restructuring plan, the company is also reducing production capacity from 3.5 million to 2.5 million units.
Honda is undergoing significant changes after reporting its first annual loss in history. It has recently canceled several EV projects due to demand concerns and abandoned its goal of becoming an all-electric vehicle maker by 2040. Instead, it is now betting on a new generation of hybrids, led by a wedge-shaped sedan and SUV pair expected in 2028.
