Honda Motor Co. and Nissan Motor Co. have officially concluded their merger talks that began in December 2024. The intended merger sought to form the world's third-largest automaker by sales, pooling resources to enhance competitiveness against industry rivals.

However, the negotiations encountered hurdles due to contrasting visions for the structure of the merger.

Honda suggested making Nissan a wholly owned subsidiary, a proposal that met resistance from Nissan's leadership, who expressed concerns about losing autonomy.

Despite the end of the merger discussions, both companies have declared their intention to continue working together within a strategic partnership, concentrating on the development of intelligent and electrified vehicles.

This choice comes as both manufacturers adapt to a swiftly changing automotive environment, characterized by growing competition from electric vehicle producers.