Honda’s merger with rival automaker Nissan is nearing collapse, multiple reports said Wednesday.
The Japanese automakers had said in December they were exploring joining forces to form the world’s third-largest carmaker, aimed at bolstering their competitiveness in the face of fast-growing Chinese electric vehicle manufacturers.
But negotiations stumbled over their competing visions for the future company, with Nikkei reporting that Honda proposed Nissan operate as its subsidiary, a suggestion the smaller firm rejected.
Legacy automakers have been caught flat-footed by the swift rise of Chinese EV manufacturers which have braved cutthroat competition at home and are now rapidly expanding abroad.
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