The proposed merger between two Japanese veteran auto companies – Honda Motors and Nissan Motors – has now been canceled. In December 2024, both companies signed an MoU for merger, but the deal broke in February 2025 due to some basic differences. Now this equation has a new twist, as Toyota Motors, the world’s largest auto company, has taken the initiative to join hands with Nissan.
According to the report of Japan’s prestigious newspaper Manichi Shimban, the dialogue of merger between Honda and Nissan is now completely finished. In this situation, Toyota has started discussing the possibilities of partnership with Nissan on some important points. However, no official statement has been released by both companies about this conversation so far.
The biggest reason for the merger deal of Honda and Nissan was that Nissan was not ready to become a subsidiary of Honda. This disagreement stopped this major merger in the middle way. Despite this, the two companies are still working together in areas such as development of electric vehicles and software development for them.
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Toyota Motors has been the world’s number-1 car company for the last five years. The company’s cars are the best sold in the global market. Apart from this, Toyota also has a strong stake in many other Japan companies – Toyota stake in Subaru (20%), MAZDA (5.1%), Suzuki (4.9%) and ISUZU (5.9%). On the other hand, Nissan is already involved in global partnership with Renault and Mitsubishi.
