Is Nissan committing seppuku by refusing the merger with Honda?

If Honda confirms its intention to abandon the merger project, Nissan might have just let slip its last chance of survival…

The two Japanese manufacturers initially planned to create a joint holding company by 2026, where Honda and Nissan would be equally owned subsidiaries to facilitate their merger. However, Honda recently proposed transforming Nissan into a wholly owned subsidiary, an initiative fiercely opposed by the proud manufacturer, insisting on the need for an egalitarian structure. But to negotiate on equal terms, you must first be… equals! Which is far from the case today with Nissan on the brink of collapse.

This Wednesday, February 5th, according to Nikkei Asia, Nissan ended merger discussions, unable to find common ground with Honda and likely tired of these inappropriate pretenses. This ambitious project, which aimed to form the third largest automotive group in the world, is now at a standstill. A decision that seems reckless given the monumental challenges Nissan is facing.

Since last December, the two groups had been trying to negotiate this strategic alliance. Yet, Nissan refused to make concessions, clinging to a vision of equality that is no longer realistic. Facing fierce competition from Tesla and Chinese manufacturers, Nissan, already weakened, seems to ignore that it may have just missed its last chance of survival in a sector undergoing rapid transformation. Although Honda has left the door open for further discussions and existing collaborations—particularly on software and electric vehicles—continue, Nissan’s attitude raises questions about its ability to make strategic decisions for the future.

The impact on the markets was immediate. Honda saw its stock rise by over 11%, a sign of investor confidence in its long-term vision. In contrast, Nissan dropped nearly 10%, reflecting growing concerns about its future. By refusing this merger, Nissan may have signed its own death warrant. While industry giants are regrouping to survive, persisting in navigating alone is a choice that risks condemning it to fall behind in a ruthless industry.

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