TOKYO – High-profile merger discussions between Nissan and Honda, aimed at forming a $60 billion partnership, have collapsed. This alliance was intended to help both automakers compete with the growing presence of Chinese brands. However, the talks disintegrated within just a month.

Key Points:

• Nissan's Pride and Position: Nissan demanded near-equal treatment, despite its weaker market standing, creating tension.

• Honda's Demands: Honda insisted on deeper workforce and factory capacity cuts, which Nissan was unwilling to accept.

• Subsidiary Proposal: The situation escalated when Honda proposed making Nissan a subsidiary, further straining relations.

• Management Challenges: Sources cited slow decision-making and insufficient urgency from Nissan as contributing factors to the breakdown.

According to sources, Nissan CEO Makoto Uchida informed Honda President Toshihiro Mibe that they wanted to end the discussions after Honda introduced the subsidiary proposal. Both companies have declined to comment on the specifics of the talks.

The failed merger underscores the challenges both automakers face in an evolving industry. Nissan is now exploring new partnerships, potentially with Foxconn. Meanwhile, both companies are scheduled to report earnings soon, shedding more light on their respective futures.
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