Honda, Nissan end merger talks but continue EV partnership
Honda and Nissan have announced the end of their merger discussions but confirmed that they will continue collaborating on electric vehicle (EV) development.
The Japanese car makers, along with junior partner Mitsubishi, aimed to combine their businesses to fight back against competition from rival firms, especially in China, News.Az reports, citing foreign media.
"Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles," the companies said in a statement on Thursday.
Joining forces would have created a new motor industry giant alongside Toyota, Volkswagen, General Motors and Ford.
It would also have provided Nissan, which for a while was Japan's second largest car company, with crucial relief following years of slowing sales and turmoil involving its top executives.
In November, Nissan suprised shareholders with plans to lay off thousands of workers to tackle a drop in sales in China and the US.
The growing electric car market has been increasingly dominated by Chinese manufacturers, such as BYD.
This increased competition has left many of the world's leading car makers struggling to compete.
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