Nissan Motor Co. and Honda Motor Co. have announced the termination of their Memorandum of Understanding (MoU) signed on December 23, 2023, which had outlined a potential business integration.
Since signing the agreement, leadership teams from both automakers—including their chief executive officers—engaged in extensive discussions, evaluating market conditions, strategic objectives, and post-merger management structures. They also consulted various stakeholders to assess the feasibility and implications of the integration.
Throughout these deliberations, multiple structural options were considered. Initially, the MoU proposed the formation of a joint holding company with Honda appointing the majority of directors and the CEO. However, Honda later suggested an alternative structure in which it would assume the role of parent company, with Nissan operating as a subsidiary through a share exchange.
After thorough analysis, both companies concluded that in an increasingly volatile automotive landscape—marked by rapid advancements in electrification and intelligent vehicle technology—it would be more effective to maintain agility in decision-making rather than pursue a full-scale integration. Consequently, they mutually agreed to terminate the MoU.
Looking ahead, Nissan and Honda will continue collaborating within a strategic partnership focused on next-generation vehicle innovation. The partnership aims to harness the strengths of both companies to drive progress in electrification and smart mobility while maximising corporate value.
Nissan Reports Declining Financial Performance
In addition to the termination announcement, Nissan released its financial results for the third quarter and the nine-month period ending December 31, 2024.
April-December Financial Performance:
- Consolidated Net Revenue: ¥9.14 trillion
- Operating Profit: ¥64.0 billion
- Operating Profit Margin: 0.7%
- Net Income: ¥5.1 billion
The company attributed the year-on-year decline in revenue and profit to reduced unit sales, increased sales incentives, and inflationary pressures.
Revised Outlook For Fiscal Year 2024
Nissan has adjusted its full-year forecast downward. The company now expects:
- Net Revenue: ¥12.5 trillion
- Operating Profit: ¥120 billion (down from previous estimates due to lower sales volume and higher incentives, though partially offset by favourable foreign exchange rates)
- Net Loss: ¥80 billion
Despite the financial challenges, Nissan remains focused on long-term strategic initiatives, including strengthening its competitive edge in the evolving automotive sector.
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