
BEEstream
February 17, 2025 at 07:45 AM
*⚡#weekendhighlights*
Nissan and Honda have called off their proposed $50 Billion merger due to disagreements over the merger's structure and concerns about autonomy. Initially, the plan was to create a joint holding company where both automakers would have equal standing. However, Honda later proposed making Nissan a wholly owned subsidiary, a move that Nissan rejected, fearing it would lose its independence and potential.
Financial disparities between the two companies also played a role. Honda has been performing relatively well, with a 25% increase in pre-tax profits, while Nissan has faced significant financial challenges, including a 98% drop in profits and plans to cut 9,000 jobs.
