Japan – Months after announcing a possible major merger deal, Nissan is reportedly halting its $60b merger talks with Honda, a move that would have created the world’s third-largest automaker.

According to a Reuters report, multiple anonymous sources revealed that merger talks between the two Japanese automakers have become increasingly complicated due to growing differences. 

Earlier, Reuters also reported that Nissan was considering calling off negotiations after Honda proposed making Nissan a subsidiary. One source stated that Nissan baulked at the idea, as it deviated from the original plan of a merger between equals.

Additionally, another source revealed that Honda, with a larger market value than Nissan, has grown increasingly concerned about its smaller rival’s progress on its turnaround plan.

While the future of the merger remains uncertain, two anonymous sources suggested that the possibility of reviving talks has not been ruled out, Reuters further revealed.

Notably, Nissan shares dropped over 4% on the Tokyo Stock Exchange, prompting a temporary trading halt after a Nikkei report claimed the automaker would exit merger talks. In contrast, Honda shares jumped more than 8%, reflecting apparent investor relief.

According to Reuters, both companies stated that the Nikkei report was not based on official information and reiterated their goal of finalising a decision by mid-February.

Nissan and Honda initially aimed to finalise their integration plans by the end of January but later postponed the decision to mid-February.

Meanwhile, Reuters reported that last month, sources indicated Mitsubishi Motors—Nissan’s smaller alliance partner—was reconsidering its involvement in the merger and might no longer join.

Japan – Nissan Motor Co., Ltd. (Nissan) and Honda Motor Co., Ltd. (Honda) have officially signed a memorandum of understanding (MOU) to initiate discussions on a potential business integration, which could lead to the creation of a joint holding company to unite their operations.

In an official press release, Nissan and Honda announced plans to form a joint holding company through a share transfer, making both automakers wholly owned subsidiaries of the new entity. The companies further emphasised their commitment to maintaining and equally developing the distinct brands under Honda and Nissan.

The signed MOU aims to enhance global competitiveness, enabling both companies to deliver more innovative and appealing products and services to customers worldwide.

If realized, the business integration would allow the automotive giants to combine resources, enhance synergies, adapt to market shifts, and boost long-term corporate value. By uniting their automotive, motorcycle, and power product businesses, they aim to strengthen Japan’s industrial base and deliver more innovative, appealing products worldwide.

Speaking on the announcement, Makoto Uchida, director, president, CEO, and representative executive officer of Nissan, said, “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”

Nissan and Honda said they will form an integration preparatory committee to ensure a smooth transition and identify specific synergies based on due diligence. By leveraging these synergies—such as platform standardization, R&D integration, manufacturing optimization, and supply chain efficiency—the companies aim to become a world-class mobility leader, targeting sales revenue exceeding ¥30 trillion and operating profit over ¥3 trillion. Additional benefits include enhanced sales finance capabilities, operational efficiency, and a strong talent foundation for electrification and intelligence.

Toshihiro Mibe, director and representative executive officer of Honda, said, “Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing.”

“Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams,” Mibe added. 

The share transfer ratio will be finalized when the definitive agreement for the business integration is signed, based on due diligence, third-party valuations, and recent average share prices. Upon the share transfer’s effective date, Honda will appoint a majority of both internal and external directors for the joint holding company, including the president and representative director or executive officer.

It is worth noting that Nissan and Honda first signed an MOU in March to establish a strategic partnership focused on vehicle intelligence and electrification, aiming to accelerate progress toward carbon neutrality and zero traffic fatalities. Since then, they have explored collaboration across various fields.

In August, the companies signed another MOU to strengthen their partnership, agreeing to conduct joint research on next-generation software-defined vehicle (SDV) platforms, with a focus on advancing intelligence and electrification technologies.

Amid these discussions, the automotive industry has faced rapid technological advancements and shifting market dynamics. On December 18, reports surfaced from Nikkei Asia that the two companies were entering merger talks to better compete with Tesla and emerging Chinese EV makers, underscoring the urgency of their collaboration.

United States – Automobile brand Honda has launched a new brand campaign called “Unstoppable Dreams”, led by a sixty-second spot that brings to life the Honda “Challenging Spirit” and the idea that resounding success is often the result of failures. 

This campaign spot follows the distinctive journeys of competitors with strong ties to Honda as they pursued their racing ambitions, including the late F1 racing legend Ayrton Senna and current FIA Formula 1 World Champion Max Verstappen.

The inspiring new Honda spot is brought to life by acclaimed director Rupert Sanders and utilises an engaging reverse poem format, so what begins as a disheartening story about failure and giving up reverses course to showcase how personal setbacks can serve as the greatest teacher and catalyst to achieve big dreams.

Moreover, the film’s message is done in a reverse poem format narrated by John Cena, the official voice of the Honda brand.

In this spot, the film features iconic Honda race machines including the 1992 Formula 1® winning McLaren Honda MP4/7A driven by Ayrton Senna and the FIA Formula 1® championship 2021 Red Bull Racing Honda RB16B driven by Max Verstappen, as well as exciting forthcoming products including the Honda hybrid-electric Prelude Concept and the Honda eVTOL (electric vertical take-off and landing aircraft).

‘Unstoppable Dreams’ will be featured across multiple media platforms, from broadcast television and streaming to contextual digital media partnerships, as well as social media to reach a wide variety of audiences. 

Phil Hruska, senior manager for automotive marketing at American Honda, said, “We want to inspire our customers and fans by celebrating those who embody the Honda Challenging Spirit including the almost mythic status of the late Brazilian racer Ayrton Senna and the three-time reigning FIA Formula 1® World Champion Max Verstappen. This new Honda campaign delivers a reassuring message of how determination and self-belief can lead to resounding triumph.”

Manila, Philippines – Dentsu’s digital-led arm in the Philippines, Dentsu One Manila, has announced its continuous winning streak in business for 2022.

The agency has recently won the pitch for the flagship brands of leading pharmaceutical firm Unilab – Conzace and Solmux. 

Aside from the pharma firm’s brands, the manila arm has also announced that it has acquired the accounts of major brands – fast-food giant Chowking’s biggest premium milk tea brand – Milksha, and also winning new assignments from Honda Cars and Honda Bikes.

Merlee Jayme, Dentsu’s chairman of creative businesses for the Philippines, commented, “Like I said before, nothing will stop us from doing our best for our clients. All you need are big insights, great work, digital knowledge, and the drive – that’s what the young Dentsu One Manila is known for.”

In 2021, Dentsu One Manila has won several awards and new businesses, including an award for Ginebra’s campaign, ‘Ginebra Frontliner Labels’, as well as effectiveness awards for Ginebra’s thematic campaigns, Nissin Ramen ASMR, and CDO Idol Cheesedog.