The Global Nissan-Honda Merger Failed. But A U.S. Partnership Is Very Much Alive

"The merger between Nissan and Honda would have created the world's fourth-largest automaker. But merger talks collapsed this year due to major differences in their desired terms. Honda wanted Nissan to become a subsidiary, but that would have hurt Nissan's pride. There were other questions about how their vast global production apparatus and R&D facilities would fit together. But the talks are now back on the table, this time with the expectations diluted, and a core focus on the U.S. market."

"North America is by far the largest market for both brands in terms of sales volume. They also both have sprawling factories in the U.S. Nissan makes several popular models, including the Altima, Pathfinder and Rogue, at its Canton, Mississippi, plant. Honda's U.S. footprint is even bigger, with factories spread across Ohio, Alabama and Indiana. The CR-V, Accord and select Civic variants are all made in America, too."

An initial merger would have created the world's fourth-largest automaker, but talks collapsed over major differences, notably Honda's push for Nissan to become a subsidiary that harmed Nissan's pride. Integration questions existed about combining vast global production apparatus and R&D facilities. Talks have resumed with diluted expectations and a concentrated focus on collaboration in the U.S. Both companies have large American manufacturing footprints—Nissan in Mississippi and Honda across Ohio, Alabama and Indiana—and are exploring joint product or powertrain development to counter tariffs, electrification costs, and rising competition. Volkswagen considered U.S. Audi production, and U.S. raw lithium efforts are accelerating.

Read at insideevs.com