The proposed USD 60 billion Nissan-Honda merger transitioned into collapse during a brief one-month period because of executive disputes and delayed choices as well as internal company pride differences.  

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Both Nissan and Honda started their potential deal to combat Chinese competition but they maintained equal partnership positions at first. The discussions between Honda and Nissan deteriorated when Honda introduced the idea that Nissan should convert into a subsidiary but Nissan refused this proposal.  

Also Read | Nissan open to new partners, including Foxconn: Report

During its recent period of decline Nissan demonstrated poor management decisions while underestimating U.S. hybrid car demand together with declining automobile sales. The company refused to accept its lower bargaining position by demanding the same terms from negotiations. Honda pushed Nissan to eliminate more jobs together with factory closures against the company's resistance because of political restrictions along with economic concerns.  

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Evidence shows Honda became discontented because Nissan remained indecisive while lacking specified steps for recovery. The issue of factory closures caused significant conflict between Nissan and its partner after Nissan rejected proposals to close its operations in Kyushu and Tennessee and Mexico and the UK because these sites were essential components of its EV development.  

The situation worsened when Nissan executive Hideyuki Sakamoto disclosed upcoming Kyushu plant EV plans through public announcements which exposed Nissan's opposition to capacity reduction. Toshihiro Mibe from Honda revealed to Makoto Uchida from Nissan that the merger would proceed as a subsidiary structure during the day after they first met.  

Nissan experienced shock from the altered terms because they considered the new proposal a challenge to its historical standing. The Shimizu Kyushu factory announced new electric vehicle plans by Renault which triggered a public objection from the automaker alongside Nissan's largest shareholder label.  

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With the merger now off the table, Nissan is reportedly exploring partnerships with new players, including Foxconn. However, industry analysts warn that Nissan’s reluctance to make deeper cuts and adapt to market realities could leave it in an even more precarious position moving forward.