Motor Nissan Motor and Honda Motor have hit herd negotiation on conditions and fusionHe announced less than two months ago to create one of the world’s largest automotive groups.
Before their publication at the end of December, they were investigating the combining operations, Nissan and Honda discussed activities as partners under the holding company.
Recently, Honda has sought a structure that would give her a more word in the holding company, and suggest that Nissan became her subsidiary of the company – the plan that Nissan refused was reported by two people who spoke about the state of anonymity because the negotiations were private.
Since the beginning of the merger interviews, several executives in Honda have been acidified for the idea of merging with Nissan, concerned about its financial state, one of the people said. Nissan counts with a decline in sales that pushed it Make deep cuts to his global operations.
Honda considered Nissan to proceed with her restructuring plans on a condition for potential fusion to move forward. When it performed its own analysis, it examined the factors, including the design of the profitability of the Nissan models, the company decided that it must determine the “strict” conditions for the merger, the person said.
It remains uncertain where Nissan and Honda will stand if the merger interviews are formally suspended. The agreement was considered a rescue rope especially for Nissan. Honda retains profitable business with two wheels, but both automakers are fighting under the weight of a difficult and expensive transition towards electric and software loaded vehicles.
Honda and Nissan had Threw Combinations as a way to share financial burden by developing and investing in new generation vehicles together. Nissan sells more than three million vehicles per year, while Honda sells nearly four million. The merger would be placed as the third largest group of cars for Toyota and Volkswagen.
The interviews continue, both people said familiar with negotiations. Companies will probably not be announced until next week, when Honda and Nissan will report their earnings for the recent October-December.
Nissan shares dropped almost 5 percent on Wednesday. Honda shares gained more than 8 percent.
