Photo/Illutration Nissan Motor Co. and Honda Motor Co. (Asahi Shimbun file photos)

Nissan Motor Co. slammed the brakes on management integration with Honda Motor Co. on Feb. 6, signaling that the beleaguered automaker is ending talks with its bigger rival.

Nissan President Makoto Uchida visited Honda’s head office in the morning and informed Honda President Toshihiro Mibe of the company’s plan to call off the month-and-a-half-long talks, a source said.

Honda and Nissan will convene meetings of their respective board of directors in the near future to retract the basic agreement on the negotiations concluded on Dec. 23.

At a meeting on Feb. 5, Nissan directors discussed Honda’s proposal to turn the struggling automaker into its subsidiary.

While some directors showed understanding, many were opposed, a source said.

Honda and Nissan initially considered creating an umbrella holding company that would oversee the two automakers.

Honda, for its part, has been frustrated with a delay in Nissan formulating its restructuring plan, which Honda said was a precondition for management integration talks.

The boards of directors of both Honda and Nissan are expected to approve the retraction of the basic agreement on the negotiations, sources said.

Related News