In a recent news update By Reuters it has become apparent that Nissan has called off the merger discussions with Honda. As per a representative From Nissan they had aimed to finalize their directive by mid February, but no new detail about the tentative final phase have not been revealed. A representative from Honda spoke on the matter and reported that they had not heard from Nissan Regarding the decision of withdrawing from the MOU on working in a tie up between the companies.
It was last year when both the brands had announced that they were in talks of amalgamating their powers to form the world’s Third largest automaker by sales numbers. The increasing differences at both the ends have possibly become the reason behind the issues that led to both the brands calling a stalemate in the communion.
Honda’s Reaction
As per Honda- they had cautioned Nissan about the possible placement as a subsidiary, noting that such an arrangement in the new union could be a divergence from the proposed plans brands the other brand walked off the prospect of a union. As per reports Nissan is in midst of a turnaround plan, planning to let go of at least 9000 employees and planning to slash 20 % of its global capacity.
Nissan has been through a lot in the last few years, while transitioning to a electric vehicle manufacturer, and hence has not been able to fully recover from the same. Beyond that the company is still trying to rebuild from the image crisis it went into after the arrest of the former chairman Carlos Ghosn in 2018.
Nissan And Renaults Partnership
Nissan’s partner Renault , which controls 36% of Nissan, had reported of a resolute yes for the a partnership. As per previous reports the merger was supposed to be finalized by the mid of January but rather it got pushed to Mid February. Beyond that Nissans smaller time partner Mitsubishi which had planned to join the forces might not do so as of yet as well.
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