Japanese automakers ditch US$60b merger talks and face new uncertainty
Honda and Nissan are calling off their US$60 billion merger, less than two months after announcing plans for business integration, amid rising competition in the electric vehicle sector. It spells deeper uncertainty for Nissan, which just posted a 78 per cent fall in Q3 operating profit and cut its annual outlook for the third time. It also underlines the difficulties faced by many auto manufacturers, as Chinese rivals disrupt the industry. Honda CEO Toshihiro Mibe called it unfortunate the talks fell through, while Nissan CEO Makoto Uchida stressed both sides will still collaborate under a strategic partnership. CNA's Michiyo Ishida has more on the potential fallout.
Honda and Nissan are calling off their US$60 billion merger, less than two months after announcing plans for business integration, amid rising competition in the electric vehicle sector. It spells deeper uncertainty for Nissan, which just posted a 78 per cent fall in Q3 operating profit and cut its annual outlook for the third time. It also underlines the difficulties faced by many auto manufacturers, as Chinese rivals disrupt the industry. Honda CEO Toshihiro Mibe called it unfortunate the talks fell through, while Nissan CEO Makoto Uchida stressed both sides will still collaborate under a strategic partnership. CNA's Michiyo Ishida has more on the potential fallout.
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