Honda & Nissan merger: The wedding is off

There will be no 'Nissonda': The Honda and Nissan merger discussions, announced last year in a Memorandum of Understanding, are over.

Honda's announcement is light on detail, but Nissan was more revealing, issuing a statement that appears to describe an insulting proposition by Honda on how the two carmakers should come together.

"During the discussions between the two companies, various options were considered regarding the structure of the business integration," Nissan says.

"Honda proposed changing the structure from establishing a joint holding company—to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange."

No other official comment has been offered, but a report in The Financial Times earlier this month suggested Honda had presented the plan as a 'take it or leave it' – with Nissan's board reportedly voting as a majority to reject.

Both companies, along with Mitsubishi, confirmed in their announcements that they will continue with the previously agreed "strategic partnership aimed at the era of intelligence and electrified vehicles."

For Nissan, the decision to steer away from Honda at the corporate level means it will instead need to undertake significant cost-cutting measures to resolve its financial woes.

Outlining its plans today, the company said it is targeting a $400 billion AUD reduction in fixed and variable expenses, lowering the 'break-even' point on vehicle sales and thus improving margins.

Sweeping changes will be made across selling, general, and administrative expenses, manufacturing, and development. A reduction in the global workforce is also part of the plan.

Manufacturing operations will be streamlined, with plant consolidations and adjustments planned for facilities in the US and Thailand, cutting around 6500 jobs in a 'right-sizing' move.

Whether the plan will mean anything for the Nissan Casting Australia Plant in outer Melbourne is unclear, although it has played an important role in the company's EV parts supply.

Variable costs, such as those related to design and manufacturing, will also be targeted for reduction, which could result in further delays to the introduction of new electric vehicles, although the company spoke optimistically about its new-model plans.

"To further enhance its offerings, the company will introduce new plug-in hybrid models in FY25 and FY26, and refresh its award-winning minivehicles and large minivans. Nissan will also strengthen its zero-emission EV lineup with the new LEAF, an all-new compact EV, and a new NEV targeted at the Chinese market," the company said.

In Australia, the next big new model we can look forward to will likely be the new Patrol, although that isn't expected to arrive until sometime in 2026.

The Ariya is still officially expected to arrive this year, although these new changes could see it delayed further, if not cancelled.