Honda and Nissan officially confirmed that they are scrapping their plan to merge. The two companies issued a joint statement on Thursday confirming that they are scrapping the merger talks. The two companies' boards have agreed to scrap the talks, bringing an end to speculation about the birth of an auto giant force.
Merger Plans and Speculations
Honda Motor Company and Nissan Motor Corporation in December had shown their intention to merge as a move to expand their global market share in the automobile sector. Nissan-owned Mitsubishi Motors Corporation was also to be included in the deal. The three companies had begun negotiations to seal the merger deal.
Industry players had expected the merger to make the two companies the third-largest car maker in the world, challenging Toyota and Volkswagen. The merger had been going on at a slow pace. Recent hints by Japanese media had indicated that the talks would be scrapped, and the companies have now officially announced that they have agreed to scrap the merger plan and put it on the backburner.
Future Cooperation on Electric Cars
The scrapping aside, Honda, Nissan, and Mitsubishi have agreed to cooperate on electric vehicle (EV) components. The cooperation will proceed, with the firms agreeing to cooperate on EV technologies and push forward together in the new automobile era.
