Honda and Nissan explored combining their businesses, but they did not merge. On February 13, 2025, the automakers ended discussions that began with a December 2024 memorandum of understanding (MOU). They said they would continue a strategic partnership focused on intelligent and electrified vehicles.
What happened to the Honda–Nissan merger plan?
The companies signed an MOU on December 23, 2024, to consider business integration. That was a proposal to explore a deal, not a completed merger. On February 13, 2025, they agreed to terminate the MOU and stop considering integration. Honda and Nissan’s joint termination announcement records the outcome.
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The proposed arrangement also changed during negotiations. The initial concept was a joint holding company; Honda later proposed that it become the parent company and Nissan its subsidiary through a share exchange. The companies did not proceed with either structure.
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Why did the talks end?
The companies’ stated reason
In their February 13 announcement, Honda and Nissan said they had discussed market conditions, the objectives of integration, and post-integration management strategy and structure. They said they chose to end discussions to prioritize quick decision-making and execution of management measures amid a volatile market environment as electrification advanced. That is the companies’ stated rationale, not evidence that the EV transition alone caused the talks to fail.
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The disagreement over control
The move from a joint holding company to Honda as parent and Nissan as subsidiary was a central point of disagreement. The Associated Press reported that Nissan CEO Makoto Uchida said he could not accept the revised plan because, in his view, it would not realize Nissan’s potential. Honda CEO Toshihiro Mibe told AP he was “really disappointed” and said Honda had suggested a stock swap to speed up decision-making. These remarks were reported on February 13, 2025, and reflect the executives’ positions at the time.
What was the original business case?
The December 23, 2024 announcement framed the proposed integration around combining capabilities across a broad vehicle portfolio, including internal-combustion-engine (ICE), hybrid-electric (HEV), plug-in-hybrid-electric (PHEV), and battery-electric (EV) offerings. Mitsubishi Motors separately signed an MOU to consider possible participation. That announcement described an initial direction for discussion, not a finalized deal or a guarantee of particular products, savings, or faster EV launches.
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The surviving cooperation was described more narrowly as a strategic partnership for the era of intelligent and electrified vehicles. AP reported that areas of cooperation included EVs and smart-car technologies such as autonomous driving. The companies’ announcement does not make that partnership equivalent to a merger.
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AP reported that Nissan earned 5.1 billion yen in the nine months from April through December 2024, compared with 325 billion yen in the same period a year earlier. It also reported Nissan’s then-projected 80 billion yen loss for the fiscal year ending in March 2025. These are period-specific results and a forecast reported at the time of the talks’ termination; they do not describe Nissan’s current performance or quantify any likely effect of the proposed merger on customers, prices, jobs, or EV competitiveness.
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Will Honda and Nissan still work together on EVs?
They said they would continue a strategic partnership focused on intelligent and electrified vehicles after ending consideration of business integration. That means the merger plan ended, while a basis for cooperation remained. The announcements cited here do not establish specific future models, launch dates, or consumer benefits from that partnership.
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