A high-level Japanese group that includes a former prime minister has drawn up plans for Tesla to invest in Nissan after the collapse of its merger talks with Honda, the Financial Times said on Friday.

Japan's Honda Motor said on Thursday its third-quarter operating profit increased 5% from a year earlier, largely due to a strong performance of its motorcycle business and a weak yen, but missed analysts' estimates.

Japanese auto giants Honda and Nissan confirmed on Thursday they had scrapped merger talks that would have created the world's third-largest automaker by unit sales.

Honda and Nissan are losing market share at an alarming rate. The collapse of their merger talks may make things worse.

The country’s corporate giants, nudged by reform, are exploring big deals. Carmakers Honda and Nissan, convenience store 7-Eleven’s owner and others are testing waters at home and abroad. In this week’s Viewsroom debate,

Japan's Nissan Motor is open to working with new partners including even technology firms after merger talks with cross-town rival Honda Motor foundered, people familiar with the automaker's thinking have said.

Honda and Nissan scrapped merger talks after failing to agree on terms, marking an abrupt end to what could have been a landmark consolidation in Japan's auto industry. The negotiations, which began in December 2024,

Japan’s Nissan and Honda have ended discussions on a deal that would have created the world’s third-largest carmaker.The two companies, along with their junior partner Mitsubishi Motors, agreed to “terminate” a memorandum of understanding to join forces,

Nissan Motor Co. and Honda Motor Co. have officially terminated discussions on a potential business integration, just months after signing a memorandum of understanding (MOU) on December 23. The decision follows extensive deliberations between the two automakers’ leadership teams, who weighed the feasibility of a merger against the backdrop of a rapidly shifting automotive landscape. Since signing the MOU, executives from both companies, including their respective chief executive officers, engaged in in-depth discussions regarding market conditions, integration objectives, and potential post-merger management structures. Given the magnitude of such a union, Nissan and Honda also sought input from key stakeholders to ensure a thorough evaluation of the proposal. A primary point of contention emerged over the structure of the merger. Initially, the agreement envisioned the creation of a joint holding company, with leadership appointments divided between the two firms. However, Honda later proposed an alternative plan, advocating for a more hierarchical structure in which Honda would become the parent company and Nissan its subsidiary through a share exchange. Ultimately, both companies determined that, given the accelerating pace of electrification and intensifying competition in the global auto industry, a merger could hinder their ability to respond swiftly to market changes. Instead, they concluded that dissolving the MOU would better serve their strategic interests, allowing them to remain agile in an evolving industry. Despite abandoning formal integration plans, Nissan and Honda reaffirmed their commitment to collaboration in the fields of electrification and intelligent vehicle technology. The companies plan to explore joint initiatives that enhance efficiency, innovation, and long-term competitiveness in an industry increasingly defined by software-driven mobility and sustainability. The dissolution of the merger talks marks a notable shift in Japan’s automotive sector, where consolidation has been an ongoing theme amid pressures from emerging EV competitors and supply chain disruptions. While a full-scale merger is off the table, the two industry giants will now seek to maximize their corporate value through a more flexible, cooperative approach.

The Japanese companies’ decision to call off negotiations highlights the challenges legacy automakers face in partnering to tackle new technologies.

Japanese automakers Honda, Nissan and Mitsubishi are dropping their talks on a business integration. The automakers said Thursday that they agreed on the move.