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Honda, Nissan scrap merger plan as negotiations collapse


Honda Motor Co. and Nissan Motor Co. say that they have scrapped a historic realignment plan to become one of the world's biggest auto groups as they could not agree on how to bring their operations together.

After considering "various options," including Honda's proposal to make Nissan its subsidiary, they decided to end the talks to "prioritize speed of decision-making and execution of management measures" in an increasingly volatile market heading into electrification, they said in a statement. The two carmakers aimed to cut costs by sharing the growing financial burden of developing EVs and software to better compete with global rivals like U.S.-based Tesla Inc. and China's BYD Co. When they revealed their plan to begin merger talks at a press conference in December, Honda said struggling Nissan would need to boost its turnaround efforts as a condition for the deal.

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