Honda terminated their planned $60 billion partnership with Nissan due to strategic disagreements. When Honda announced the merger in December the resulting auto company would become the world's third-largest car manufacturer. The merging deal has been terminated because Honda and Nissan experienced internal disputes over their respective future directions.
Honda and Nissan started merger discussions because they needed to adjust to new conditions in the evolving automotive market. Both electric vehicle trends and growing innovation expenses stood as main discussion points during the talks. A revised proposal from Honda which would turn Nissan into a subsidiary generated discomfort within Nissan's leadership according to reports. The changed business terms sparked negative reactions among Nissan officials who actively opposed the deal due to their pride factor and refusal to accept the revised proposal.
Nissan reacted negatively when it suspected Honda desired to control Nissan operations independently from the merger. The automaker rejected Honda's offer for complete control because it meant losing its independent status. The burgeoning conflict between the companies stripped away any chance for them to resolve their disputes so the merger was eventually terminated.
After Nissan canceled its alliance with Renault, Foxconn expressed plans to acquire shares of the Japanese automaker. Nissan seems to have embarked on a new business strategy through this acquisition. The electric vehicle expansion of Foxconn presents Nissan with the necessary resources to grow its standing in the aggression of electric vehicles.
Through its involvement, Foxconn demonstrates a potential joint effort to provide Nissan with the essential technological capabilities required for its future mobility transition. The company's technological knowledge in electronics continues to bring benefits to Nissan's expansion of electric vehicle development.
After the failed Honda-Nissan merger both companies must decide their future directions. The promise of merging Honda and Nissan proved substantial initially but independent management has become crucial for both companies now that their proposed partnership ended. Honda intends to build its market standing in primary regions while Nissan seeks alternative business collaborations to persist in the international automotive industry. The automotive sector endures structural changes despite undergoing some recent detriments. Manufacturing companies require increasing cooperation to address electric vehicles and various sector challenges that continue to evolve.