A historic merger that has been flagged since Christmas is off the table, so three major Japanese car brands that repair workshops see plenty of , will stay distinct for now.
Nissan Motors, Mitsubishi Motors Corporation and Honda Motor Co., announced they would to terminate MOUs. This includes the MOU signed between Honda and Nissan on on December 23 last year to consider business integration.
In a statement the companies said management teams of both companies, including the chief executive officers, have discussed and considered the surrounding market environment, the objectives of the business integration, and the management strategies and structures post-integration.
During the discussions between the two companies, various options were considered regarding the structure of the business integration.
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Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the MOU, to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange.
As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU.
The three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles. This framework was established with the MOU signed on August 1 last year, striving to create new value and maximise the corporate value of each company.