TOKYO, Feb. 6 (Xinhua) — Nissan Motor Co. has formally knowledgeable Honda Motor Co. of its determination to terminate merger negotiations, a transfer which can possible convey an finish to the restructuring try that aimed to create the world’s third-largest automotive group, native media reported Thursday,
Nissan CEO Makoto Uchida instantly conveyed the choice to Honda CEO Toshihiro Mibe throughout a gathering in Tokyo on Thursday, Nikkei reported.
The transfer follows Nissan’s board assembly on Wednesday, the place the corporate solidified its plan to withdraw from the Memorandum of Understanding (MOU) signed in December 2024.
The merger discussions initially centered on forming a holding firm that will oversee each manufacturers, however negotiations stalled over the shareholding construction, with tensions escalating when Honda proposed making Nissan its subsidiary, an thought Nissan strongly opposed.
The firms are anticipated to resolve by mid-February on the merging particulars. However, with rising variations of their integration methods, the chance of reaching a remaining settlement stays unsure.
According to native media, Honda has been pushing Nissan to speed up its restructuring efforts. In November, Nissan introduced plans to chop 9,000 jobs worldwide and cut back its world manufacturing capability by 20 % after reporting a greater than 90 % drop in web revenue for the April-September interval.