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Talks between Honda and Nissan about a partnership have stalled. According to sources, Honda viewed Nissan not as an equal partner but as a potential subsidiary. This has forced Nissan to look for alternatives, including a partnership with Taiwan's Foxconn, which could help create modern electric vehicles.
What else is known
Nissan CEO Makoto Uchida met with Honda CEO Toshihiro Mibe and rejected the proposed merger. The companies had initially considered the possibility, but Nissan's relationship with Renault and its 24% ownership of Mitsubishi made the deal difficult.
Foxconn has previously approached Nissan with a partnership proposal, but it was previously rejected. Now the parties seem to have reached an agreement. Foxconn has a promising research department in the field of electric vehicles, which could help Nissan in the development of next-generation cars.
Nissan and Honda have declined to comment, with formal details of the merger or its cancellation expected in the middle of the month. If a deal doesn't go through, Nissan will be forced to cut costs: it has already announced the layoff of 9 workers, reduced production and halved Uchida's salary.
The company has also changed its marketing policy: dealers are allowed to offer deep discounts, and models like the Nissan Z are sold much cheaper than when they were launched. In addition, Nissan continues to produce the cheapest car in the United States, the Versa. But without a new partner, the company's future remains in jeopardy.
