Honda and Nissan have ended talks about merging. But they will still work together on electric cars. They had hoped to join forces to compete better. Chinese car companies are growing fast and creating strong competition.
Mitsubishi was also part of the talks. The three companies will now work together in a new way. They will focus on making smart and electric cars. This was announced on Thursday.
If the merger had happened, they would have become a big global competitor. They would have joined other major car brands like Toyota, Volkswagen, and Ford. It could have also helped Nissan recover from recent struggles.
Struggles in the Market
Last November, Nissan announced job cuts. This surprised investors. The company was struggling with weak sales in China and the U.S. Nissan has had leadership issues for years. Its sales have dropped.
Meanwhile, Chinese companies like BYD have become stronger in the electric car market. They are pushing past their global competitors.
Before the merger talks, Honda and Nissan already planned to work together. They wanted to develop electric cars. Honda’s CEO, Toshihiro Mibe, said it is urgent to get ready for the future. He warned that if they do not act, they will fall behind. The goal is to be ready by 2030.
Honda has been investing in better batteries and clean energy. Nissan was one of the first to make an electric car, the Leaf. But now, it is struggling to keep up with others.
Foxconn May Invest in Nissan
Nissan is looking for ways to improve. One possible solution is an investment from Foxconn. Foxconn is a Taiwanese company. It is famous for making Apple products. Now, it wants to grow in the electric car business.
Foxconn Chairman Young Liu spoke on Wednesday. He said they are open to working with Nissan. “If we need to buy Nissan shares to work together, we will consider it,” he stated. If Foxconn invests, it could help Nissan get better at making electric cars.
Foxconn has been making moves in the car industry. It has been working with many car companies. A deal with Nissan could help Nissan compete with Chinese brands. Foxconn is known for its fast production and strong supply chain.
The Car Industry is Changing
The auto industry is moving towards electric and smart cars. New laws and climate goals are pushing companies to stop making gas-powered cars. Governments are also offering support for electric car production.
Chinese car companies have an advantage. They get support from their government. This helps them grow fast in the market.
For Japanese car makers, it is now a race to stay relevant. They must invest in new technology and find good partnerships. The end of the merger does not mean Honda and Nissan will stop working together. Instead, they will focus on making better electric cars.
What’s Next for Honda and Nissan?
Honda and Nissan know that they must change. Their new partnership could help them develop better electric cars. Both companies plan to release new models soon.
Honda has big plans for the future. It is working on solid-state batteries. These batteries could change the industry. They can last longer and charge faster. Honda hopes to launch them by 2030.
Nissan wants to expand its electric car lineup. It is working on better batteries and more models. But it will need support to keep up with Chinese brands.
The next few years will be important for these companies. The car market is changing fast. Honda and Nissan need to stay ahead. If they do not, they risk falling behind their competition.
For more updates on the car industry, visit Euro News 24.