Integration Negotiations Are Terminated By Honda, Nissan, And Mitsubishi

Japanese automakers Honda, Nissan, and Mitsubishi say they are finalizing business integration talks.

Sources say the deal fell through because Nissan thought it could dictate the terms of the deal as if it were equal to Honda. There was no way Honda would allow any merger where the failing brand would have a 50/50 vote in the newly merged company. Honda has always advocated majority decision-making, whether that’s 60/40 or 70/30.

The deal also fell through because Nissan has still not shown any vision or goal for getting out of the crisis it is in.

Three months ago, the three companies came to a preliminary agreement to continue discussions guided by the framework established in the MOU signed by Nissan and Honda on August 1st, which aims to foster a strategic partnership centered on intelligence and electrification.

During this period, Nissan and Honda explored various possibilities and options in their discussions. Meanwhile, both companies faced a rapidly evolving business environment, with technological innovation progressing at an accelerating pace. The Memorandum of Understanding aimed to ensure their global competitiveness.

However, about ten days ago, news leaked indicating that reaching an agreement was unlikely, and this was confirmed today.

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