Nissan and Honda merger talks could resume under new leadership

Nissan’s incoming Chief Executive Officer (CEO), Ivan Espinosa, has suggested that the door remains open for potential partnerships, including the possibility of a merger with Honda. This development follows the breakdown of discussions between the two Japanese automotive giants earlier this year.

Read more: Why did the merger between Nissan & Honda break down before?

Nissan’s new Chief Performance Officer, Guillaume Cartier, told reporters during a media roundtable, which included Inside EVs, “We never stopped [talking with Honda].”

Following the announcement of Nissan’s two-year global roadmap, Espinosa addressed international media, including where he expressed his willingness to explore strategic alliances.

“I have a no-taboo approach to partnerships,” he said, hinting that no option is off the table for Nissan’s future business strategy.

Previous merger talks and stumbling blocks

In early 2024, merger discussions between Honda and Nissan commenced as both automakers explored a potential collaboration for developing EVs to compete against the surge of competitors from China. However, the talks reportedly broke down due to conflicting visions for the partnership. Honda, the larger and more financially stable company, was said to have favoured acquiring Nissan and making it a subsidiary, while Nissan sought a merger on equal terms.

Despite the breakdown, reports suggest that Honda may be open to revisiting discussions following the departure of former Nissan CEO Makoto Uchida. With Ivan Espinosa set to take over as CEO from April 1, there is potential for renewed negotiations between the two brands.

Read more: Why did Nissan withdraw from the merger initially?

Current collaborations between Nissan and Honda

Even though merger discussions were unsuccessful, Nissan and Honda have continued to work together on various projects. Espinosa confirmed that ongoing discussions between the two companies are centred on electric vehicle (EV) development and cost-saving measures.

“We are working every week with them because we have a lot of projects together,” Espinosa stated.”

Beyond EVs, the partnership is also exploring artificial intelligence applications, with the possibility of expanding collaboration into other vehicle segments. 

A Future of strategic partnerships

Espinosa’s comments suggest that Nissan is looking beyond just Honda for future collaborations. He emphasised that forming strong alliances is becoming essential for automakers to remain competitive in an evolving industry.

“I would say for partnerships in general, we are very open,” Espinosa said. “The future of the industry is going to be very interesting, and it’s clear that the name of the game in the future is how to build efficient partnerships that add value to your company.”

Following the stalled talks with Honda, Nissan also engaged in discussions with Foxconn, the Taiwanese electronics giant, to explore a potential collaboration in electric vehicle production and technology development.

Read more: Makito Uchida steps down as Nissan CEO, Ivan Espinosa steps in.

While a full-fledged merger between Nissan and Honda remains uncertain, their continued collaboration signals that both brands are actively seeking ways to navigate the changing automotive landscape together. The industry will be watching closely to see if Espinosa’s leadership brings about the much-needed revival for the iconic Japanese carmaker.