Honda and Nissan did not merge. They announced an agreement on December 23, 2024, to consider integrating their businesses under a joint holding company, but on February 13, 2025, they terminated that memorandum of understanding (MOU) and ended the integration discussions. They said they would continue working together through a strategic partnership focused on intelligent and electrified vehicles.
What Honda and Nissan originally proposed
The December 23, 2024, MOU opened discussions about a possible business integration; it was not a merger agreement or a decision to combine the companies. The automakers said their examination had only begun and that they had not decided whether to integrate. Their initial concept was a joint holding company, potentially created through a joint share transfer.
The plan grew out of an earlier strategic partnership. Honda’s announcement noted that the companies had signed an MOU focused on vehicle intelligence and electrification on March 15, 2024, and deepened that framework on August 1, 2024, including joint research into technologies for next-generation software-defined-vehicle platforms. Honda and Nissan’s December 2024 announcement described the proposed integration as a way to explore complementary global vehicle offerings spanning combustion-engine, hybrid, plug-in-hybrid, and electric models.
How the proposed structure changed
In their February 13, 2025, joint announcement, Honda and Nissan said Honda had proposed changing the arrangement under discussion. The original concept was a joint holding company in which Honda would appoint most directors and the CEO. Honda then proposed making Honda the parent company and Nissan its subsidiary through a share exchange.
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| Point | December 2024 concept | Later proposal reported in February 2025 |
|---|---|---|
| Governance and control | Joint holding company; Honda would appoint most directors and the CEO. | Honda as parent company; Nissan as subsidiary. |
| Transaction form | Joint share transfer was under consideration. | Honda proposed a share exchange. |
| Status | MOU to consider possible integration; no decision to integrate had been made. | Proposal made during talks; the companies subsequently terminated the MOU and ended discussions. |
This account reflects the proposal described in the companies’ joint statement. That statement does not provide a full record of either company’s negotiating positions or board deliberations. The February 2025 termination announcement gives the companies’ account of the change and the decision to stop talks.
Why the talks ended—and what the companies said about EVs
Honda and Nissan said they ended the integration discussions to prioritize speed of decision-making and execution in an increasingly volatile market as the industry moves toward electrification. That is the rationale the companies gave; the announcements do not establish that EV competition alone caused the talks to fail or provide a complete comparison of the automakers’ positions in global electric-vehicle markets.
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The EV context was central to their stated strategy, but the proposed merger was not presented as the only form of cooperation. The companies said they would continue within their strategic-partnership framework, aimed at intelligent and electrified vehicles. In their joint statement, they said they would seek to “create new value and maximize the corporate value of both companies.”
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to Mitsubishi Motors’ role
Mitsubishi Motors was not part of a completed merger. On December 23, 2024, Mitsubishi joined Honda and Nissan in a separate MOU to consider a three-company collaboration structure and Mitsubishi’s possible involvement in the contemplated integration. The three automakers terminated that MOU on February 13, 2025, after Honda and Nissan ended their integration discussions. They said they would continue collaborating through a strategic partnership focused on intelligent and electrified vehicles. The three companies’ termination announcement describes that decision.
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Timeline: from partnership to ended merger talks
- March 15, 2024: Honda and Nissan signed an MOU for a strategic partnership focused on vehicle intelligence and electrification.
- August 1, 2024: They deepened the partnership framework and agreed to joint research on technologies for next-generation software-defined-vehicle platforms.
- December 23, 2024: They announced an MOU to consider integration through a joint holding company. Honda, Nissan, and Mitsubishi also signed a separate MOU to consider a three-company collaboration structure.
- February 13, 2025: Honda and Nissan terminated the integration MOU and ended the discussions; the three automakers also terminated their related MOU.
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