Nissan Preparing to Scrap Merger Talks with Honda

Economy

Tokyo, Feb. 5 (Jiji Press)--Nissan Motor Co. is preparing to rescind its agreement with Honda Motor Co. to consider integrating their operations, sources said Wednesday.

Nissan people are increasingly opposed to a Honda proposal to make Nissan a subsidiary, due to concerns over losing managerial independence, the sources said.

Nissan held a meeting of its board of directors the same day to discuss the planned business integration.

Regarding news reports that the integration talks would go back to square one, Nissan said that it is considering the matter and intends to announce its future plans in mid-February.

Last December, the two automakers announced their agreement to discuss establishing a holding company that would put both Nissan and Honda under its wing, in order to deepen cooperation mainly over the joint development of electric vehicles. The two were working to ink a final integration deal as early as June this year.

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Jiji Press