The News
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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