Nissan and Honda have officially announced an agreement to terminate the memorandum of understanding (MOU) regarding the former’s “business integration”, signed back in December, 2024. This news also affects the three way collaboration between Nissan, Honda and Mitsubishi that was set to take place on the back of the merger.
Management teams from Nissan and Honda assessed the current market, business objectives post merger and future strategies. The MOU initially outlined a structure where the two would establish a joint holding company, Honda expressed a desire to change this later on. A move that would make Nissan a subsidiary of the parent through a share exchange.
Following these discussions, the agreement was taken to conclude the project and therefore terminate the MOU. However, this doesn’t put an end to future collaborations between Nissan and Honda as both brands are still committed to working together on development of technology and EVs, Mitsubishi too are involved in this through an MOU that was signed back in August, 2024!
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Words by Matthew D’Souza, image courtesy of Nissan Newsroom Global
