Honda and Nissan Call Off Merger
Tokyo, February 13, 2025 – In a surprising turn of events, Honda and Nissan officially called off their merger talks, which aimed to close the gap between Tesla and Chinese electric vehicle (EV) firms. The merger, which would have created an auto group worth $60 billion, was seen as a strategic move to compete with the rapidly rising Chinese EV makers and the US giant, Tesla.
Nissan and Honda’s Worth
- Honda: Approximately $48.6 billion
- Nissan: Market capitalization is nearly five times smaller than Honda’s
Reason for Mitsubishi’s Exit Mitsubishi Motors, initially part of the merger discussions, decided to quit due to the growing differences between the companies and the complexity of the proposed corporate structure. Mitsubishi’s involvement was always uncertain, and the company chose to focus on its own restructuring efforts.
Tesla’s Worth Tesla, the leading US EV manufacturer, is valued at around $800 billion, making it one of the most valuable car companies in the world.
Key EV Brands in China Chinese EV brands such as BYD, NIO, and Xpeng have been making significant strides in the market, posing a strong challenge to traditional automakers.
Despite the termination of the merger, Honda and Nissan have agreed to continue their collaboration within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles. They plan to focus on areas such as batteries and e-axles to create new value and maximize their corporate value
