Japanese automobile manufacturers Nissan and Honda They turned back with the estimated fusion process in US $ 50,000 million, which would have given rise to one of the world’s largest car companies.
Companies agreed to end their agreement, according to a joint statement.
“Nissan Motor Co., Ltd. and Honda Motor Co., LTD, agreed today to rescind the MOU signed on December 23 of last year to consider a commercial integration between the two companies,” says the statement.
The announcement in parallel to the presentation of Nissan’s financial results of the third four -month period of 2024, which have all negative numbers compared to the same period of 2023.
Besides, Nissan He warned that the focus of conversations with Honda had changed flatly, turning towards the possibility that the first company is a subsidiary of the second. Naturally, these conditions did not like the company based in Yokohamawhere they explored the possibility of a society.
Nissan and Honda ended a worldwide fusion
Among the considerations for which Nissan did not arrive at an agreement with Honda is the still current relationship of the Japanese brand with the French Renault
It should be remembered that the latter holds an important portion of shares as a result of the old agreement between both companies globally.
Nissanthat for years and until 2020 he was the second largest car manufacturer in Japan behind Toyota, he insisted on receiving almost equal treatment in conversations despite his weakest position.
Honda pressed Nissan To make deeper cuts in its workforce and factory capacity, but Nissan was not willing to consider politically sensitive factories.
After the announcement made at the end of last year by automotive Honda and Nissan On the start of negotiation for a merger – that would include Mitsubishi -, the world automotive market was expectant to create a megacompañía in the sector.
He Failure of negotiations will mean a problem for Nissan, which had its Japanese pair as lifeguards.
Its position in the world automotive industry has been constantly deteriorated during the last half decade due to a little competitive product line. With US $ 51,900 million, Honda is valued in 5.5 times the market capitalization of Nissan.
The Japanese automotive manufacturer Nissan Motor announced just over a month ago a cut of 9,000 jobs worldwide and a reduction in its production capacity of 20 %, with a view to improving its liquidity and profitability after the sharp worsening of its semiannual financial results.
The second largest Japanese manufacturer in the sector and a member of the Alliance with Renault and Mitsubishi made these restructuring measures public during the presentation of their results for April-September, which reflected a fall in their net profit of 93.5 % compared to the same semester last year.
The results of the second quarter of fiscal year 2024/25, which covers the months of July to September, illustrate the magnitude of the financial problems that Nissan faces.
During this period, the company reported an 85% drop in its operational benefits, reaching only 32.9 billion yen. This is a result that stood below expectation.
Source: Ambito
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