Honda – Toyota multi – billion dollar merger tie fall short

Merger talks between Honda and Nissan have collapsed after the firms failed to agree on a multi-billion-dollar tie-up.

The Japanese carmakers, along with junior partner mitsubishi, had aimed to combine their businesses to fight back against competition from rival firms, especially in china.

The merger would have created an auto group worth $60bn (£48bn), and the world’s fourth-largest by vehicle sales after Toyota, Volkswagen and Hyundai, The companies said they would continue their partnership on electric vehicles.

Honda entered negotiations in a leading position. It remains a popular brand globally, producing and selling more cars than Nissan.

Nissan, meanwhile, has struggled to recover from a leadership crisis since the arrest of former chief executive and chairman Carlos Ghosn in late 2018.

Honda’s boss Toshihiro Mibe had said any merger would be “based on the assumption that Nissan completes its turnaround action”