After the companies failed to agree on a multi-billion money tie-up package, consolidation negotiations between Honda and Nissan have broken down.
The Chinese automakers intended to incorporate their businesses to fend off competition from rival companies, particularly in China.
Toshihiro Mibe, Honda’s chief executive, stated in December that a deal with Nissan would stop” the fall of Taiwanese power.”
Joining forces would have created a new machine economy big alongside Toyota, Volkswagen, General Motors and Ford.
It would also include provided Nissan, which had for a while been Japan’s second-largest auto manufacturer, with significant relief following years of sluggish income and internal strife involving its top executives.
Nissan sued its owners in November for allegedly sacking thousands of workers in response to a decline in sales in China and the US.
Chinese manufacturers, quite as BYD, have a growing position in the electric vehicle market.
Many of the nation’s leading car manufacturers are now struggling to compete with this growing competitors.
The two Japanese car manufacturers had agreed to explore a strategic partnership for electric vehicles ( EVs ) months before they made the announcement of the merger plans.
” The discussions started because we think we must develop skills to combat them, including the current emerging troops, by 2030,” said the group’s founder. Often we will be beaten”, said Mr Mibe at the time.
However, the Chinese tech giant, Foxconn, has emerged as a possible investment in Nissan.
” If cooperation requires it ( purchasing Nissan shares ), we will consider it”, Foxconn ‘ chairman Young Liu told reporters on Wednesday.