Group 1 - Honda and Nissan shares rose after reports indicated the companies were considering terminating their merger talks, with Nissan's shares increasing by 7.4% and Honda's by 4.2% [1] - The merger discussions began last December, with plans to conclude by June this year, which would have positioned them as the world's third-largest carmaker by sales [2] - Nissan's strategic partner Mitsubishi was also invited to join the merger discussions, with a decision expected from Mitsubishi in mid-February or later [2] Group 2 - Analysts suggested the merger was driven by Nissan's financial struggles and the need to restructure its alliance with Renault, with Nissan planning to cut 9,000 jobs and reduce global production capacity by 20% [3] - Nissan faced significant challenges in key markets, including the U.S. and China, with operating profits dropping by 90% and net income declining by 94% in the first half of fiscal year 2024 compared to the previous year [4] - The global auto industry is undergoing transformation due to the rise of electric vehicles, impacting traditional automakers [3]
Nissan and Honda shares rise as report says automakers may call off merger talks