The News
Nissan and Honda scrapped plans for a $50 billion merger which would have created the world’s third-largest carmaker.
The two Japanese giants are scrambling in the face of competition from Tesla and China’s BYD, which have raced ahead in developing electric vehicles and autonomous technologies.
The deal’s collapse is a recognition that “sprawling auto alliances,” which struggling firms have turned to before, “may not be the answer” when the problem is catching up with technological change, The New York Times reported.
Previous partnerships between Ford and VW, and Honda and GM, to work on advanced cars both failed. The proposed merger was “just automakers going back to what they know, rather than embracing change,” one analyst said.
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