Honda and Nissan have declared that their merger negotiations are coming to an end, but they will still work together on electric cars. Together with its junior partner Mitsubishi, the Japanese automakers sought to merge their companies in order to combat competition from other companies, particularly in China.
The three businesses announced in a statement on Thursday that they will work together in the future as part of a strategic alliance focused on the era of intelligence and electric vehicles. They would have formed a new automotive industry behemoth with Toyota, Volkswagen, General Motors, and Ford. Additionally, it would have given Nissan, the second-largest automaker in Japan for a spell, much-needed respite after years of declining sales and internal strife among its top executives. Nissan shocked investors in November when it announced intentions to fire thousands of employees to combat declining sales in the US and China.
Chinese automakers like BYD are rapidly controlling the expanding electric vehicle market. Many of the top automakers in the world are finding it difficult to compete due to the increased competition. Nissan and Honda had decided to investigate a strategic cooperation for electric vehicles in March of last year, months before they made their merger plans public.
Also Read:
