P1racenews AI automatic summary:
Honda had been in talks with rival Nissan over a potential merger, but the plug is set to be pulled.
Nissan is planning to end discussions with rival Honda regarding a potential merger deal valued at $60 billion. The talks were progressing towards creating the world’s third-largest car manufacturer. Nissan is reportedly stepping back due to concerns about the deal’s structure, as Honda proposed Nissan becoming its subsidiary, while Nissan prefers a partnership of equals. Honda, with a market value of $51.9 billion, surpasses Nissan’s $9.4 billion market value. Renault, which holds a 36% stake in Nissan, is in favor of the merger, especially considering Nissan’s financial issues and plans to cut 9,000 jobs. The uncertainty surrounding U.S. President Donald Trump’s tariffs, aimed at Canada and Mexico, adds complexity to the situation, with Nissan appearing more vulnerable to tariff impacts compared to Honda or Toyota. As for Honda, they are expected to reenter Formula 1 as a full works program in 2026 with Aston Martin.
