AsianFin -- Nissan and Honda are set to provide an update on their evolving relationship on Thursday, likely signaling the formal abandonment of their merger plans after discussions between the two Japanese automakers stalled.
The two companies, which are also scheduled to announce their quarterly earnings, face challenges in an industry disrupted by the rise of Chinese electric-vehicle manufacturers like BYD, as well as the looming threat of U.S. tariffs, a significant issue in their key markets.
Nissan, Japan’s third-largest automaker, backed out of $60 billion merger discussions with Honda after talks became strained by increasing differences, including Honda’s proposal for Nissan to become a subsidiary, sources revealed.
Despite the setback, Nissan is moving forward with a restructuring plan announced in November, which includes cutting 9,000 jobs and reducing global production capacity by 20%. Specific details, including which locations will be affected, have yet to be disclosed.
In December, sources indicated that Nissan would need to further scale back operations in China, where it runs eight factories through its joint venture with Dongfeng Motor. As part of its optimization efforts, Nissan has already suspended production at its Changzhou plant.
Explore more exclusive insights at nextfin.ai.