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Home Industry

No deal: More bad news for Nissan as it fights for survival

The proposed merger with Honda is reportedly off after negotiations broke down.

Stephen Ottley by Stephen Ottley
7 February 2025
in NEWS
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Nissan and Honda have reportedly cancelled merger talks

Nissan is looking for a new saviour after walking away from a potential merger with Honda, according to reports from Japan.

It emerged in late 2024 that Nissan is in major financial trouble and in need of a new partnership to ensure its survival. The original plan called for a merger between Nissan, Honda and Mitsubishi, but the latest news from Japan suggests those talks have hit a roadblock. Instead of an equal-share merger, Honda reportedly wanted Nissan to become a subsidiary and Nissan management has baulked at this idea.

Officially both Nissan and Honda have denied the reports and said no firm decision will be made until mid-February. The idea of combining the resources of Japan’s second and third largest car companies certainly has appeal to both sides, but for Nissan it is far more critical that a deal is done.

The brand is trying to cut up to 9000 jobs around the world and reduce its global capacity by 20 per cent in order to survive. Some analysts have suggested Nissan will need outside help in order to return to a position of strength, and it is unclear who else could step-in if Honda decides not to proceed.

Last week Nissan Australia tried to help reduce concerns over its long-term future by introducing a 10-year new vehicle warranty, however the local operation will still need its global parent to navigate itself out of these current troubles in order to thrive long-term.

While Nissan Australia has performed consistently in recent years and remains one of the most popular brands in our market, globally the brand is struggling as it has lost its early advantage on electric cars and has come under increasing pressure from newer Chinese brands.

Stephen Ottley

Stephen Ottley

Editor-at-large
Stephen Ottley is an award-winning journalist who has written about cars and motor racing for all of Australia’s leading publications.

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