Let's break down Nissan’s struggles after a failed Honda merger. As Nissan ends its merger talks with Honda, the future of the automaker remains uncertain.
What does this mean for Nissan, its car dealers, and consumers? Here is what I belive lies ahead for the brand.
Nissan and Honda said they canceled their $50 billion merger; The merger would have created the world's third-largest automaker. Both Japanese companies face declining sales. The concept of Nissan becoming a subsidiary of Honda was untenable to the former; it wasn't a part of the plan a month earlier, and Nissan's top brass was reportedly deeply offended.
Fifty-three days – that’s all it took for the largest automotive merger in Japanese history to implode, leaving Nissan and Honda to walk their separate, uncertain ways.
Automotive watchers will recall that the former Nissan chief executive and chairman Carlos Ghose was dismissed from his position in 2018 amid claims of financial misconduct. Ghosn, while denying the charges, fled to Lebanon, where he remains an international fugitive to this day.
Whether or not the allegations are true, he was also responsible for Nissan’s last financial turnaround, in the early 2000s. At the time, Nissan made too many vehicles that consumers did not want in markets with plenty of other choices. For instance, Nissan was late to the party in building a profitable pickup truck. At the same time, its midsize Altima car lagged far behind the market-leading Toyota Camry and Honda Accord.
Ghosn took an axe to Nissan’s hidebound structure, chopping plants, jobs and suppliers, and reducing real estate and shareholdings. Within three years of creating the often-shaky Nissan-Renault alliance, he had returned Nissan to profit.
Now, in 2025, there is no Ghosn to make the tough calls to lead Nissan out of its latest financial quagmire.
Once again, the company finds itself far behind the global eight-ball, selling a stagnating electric lineup that could not compete with Tesla for desirability or with fast-innovating Chinese makers such as BYD for technology globally.
Honda’s hybrid cars and SUVs are both highly regarded and bestselling, exactly what Nissan could use in markets such as the US, where hybrid sales have increased by 31 percent year on year.
All in all, a combined Nissan-Honda would have become the fourth-biggest carmaker in the world and a powerful force to be reckoned with globally.
What next for Nissan? China’s Foxconn is considering a “partnership” with Nissan. This is especially interesting, considering the technology giant had previously desired to acquire Nissan outright. Perhaps the tumultuous courtship with Honda has given the Chinese cold feet and they are prepared to play the long game and wait for the dominos to tumble.
The choices are limited and the impact could be huge.
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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.
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