Nissan And Honda Merger Collapses, Exposing Who Needed It Most

The Honda and Nissan merger that has been speculated on and reported for months is not going to happen after all, according to a press release from Nissan. There are a number of reasons the merger failed. Nissan cited the ever encroaching electric car future with "an increasingly volatile market environment." The chief cause of talks dissolving, however, could be blamed on Nissan's pride and need for independence. The press release says that Honda wanted to pick its own leadership for Nissan, more than likely clearing the executive suite. Additionally, Nissan would be made a subsidiary of Honda. Nissan, apparently, couldn't abide by that.

After the dust settles, Honda will continue on, doing business as usual. But Nissan will still be left in the lurch, looking for a buyer or a partner. The company still needs something to help itself out of the financial hole it has gotten in, and now Honda has been crossed off the list. 

The press release stated "it would be most appropriate to cease discussions," meaning that Honda and Nissan likely aren't going to come back to the negotiating table anytime soon and try to rehash out an agreement. Nissan is likely too far past the point where it could build a game changer EV and expect all of its problems to be solved. Its current EV offerings, which consist of the Nissan Ariya and Nissan Leaf for the North American market, aren't bad cars at all, but it will take a lot more than two cars to rescue an entire company from financial doom.

Honda and Nissan will, however, continue with what Nissan is calling a "strategic partnership" that will attempt to tackle electrified and perhaps autonomous cars in the future. That's not as drastic as a full on acquisition like Honda has probably hoped for. The clock is still ticking for Nissan and the future is uncertain.