Honda, Nissan End Every Connection, Scuttling Treaty of $ 60 billion | News of the automotive industry

Potential connection would create the third largest car manufacturer, US and Chinese companies, the world’s largest car manufacturer.

Second and third car manufacturers in Japan, Honda and Nissan, announced that their committees voted to end the interview of the merger, even while committing themselves to continue cooperation on electric vehicles in the midst of intensifying global competition.

The announcement on Thursday leads to the end of a potential connection that would create the third largest car manufacturer of the car, worth some $ 60 billion.

In a joint statement, companies said that “they agreed to abolish Mou (a memorandum of understanding) signed on December 2nd. Last year to consider the business integration of the two companies.”

The intention of the company to join forces was considered to be an offer to capture for us Titan Tesla and Chinese companies In the electric vehicle market.

Nissan allegedly gave up talking to a larger rival Honda after negotiations were complicated by growing differences, including Honda’s proposal for Nissan to become a branch, sources had previously told Reuters news agency.

In a joint statement, car manufacturers confirmed that Honda “suggested changing the structure from establishing a common holding company … to the structure in which Honda would be the home company and the Nissan branch through shares exchange.”

As a result of the conversation, both companies concluded that “it would be most appropriate to stop discussing and abolishing a memorandum of understanding,” the statement said.

However, they will continue to “cooperate within the strategic partnership aimed at the time of intelligence and electrified vehicles, trying to create a new value and maximize the corporate value of both companies,” he added.

Car manufacturers and younger partner Mitsubishi Motors have announced that they will consider the merger late last year. The sources later told Reuters that Mitsubishi was unlikely to participate.

Honda and Nissan saw their industry and a key Chinese market that was increased by a rapid increase Chinese Electric Vehicle Manufacturers Like byd, they both face the appearance of a tariff in the US, to another key market.

With the collapse of the interview on the merger, Nissan is now open to work with new partners, and Taiwanese Foxconn seen as one candidate.

Foxconna Young Liu said on Wednesday that he would consider a stake in Nissan, but that his main goal was to cooperate.