Nissan, Honda call off planned business integration

Nissan Motor and Honda Motor have terminated their Memorandum of Understanding (MoU) regarding a potential business integration, opting instead for a strategic partnership focused on "intelligence and electrified vehicles." This decision prioritizes faster decision-making in a rapidly evolving market. Nissan and Honda initially intended to integrate through a joint holding company structure, but this plan has been scrapped. This decision also leads to termination of a separate MoU between Nissan, Honda and Mitsubishi Motors to consider a tripartite collaboration. Meanwhile, Nissan also announced a revision to its fiscal year 2024 financial forecast, citing "restructuring" charges, and lowers its net sales and operating profit forecasts, but expects to be in a position to finalize the re-structuring estimates in Q4.