Honda and Nissan may refuse to merge: what will happen to low-cost models

News about the merger of Honda and Nissan into one corporation is attracting a lot of attention. The manufacturers are busy discussing the terms of a possible deal, but the merger may not take place in the end. This raises new questions about the future of low-cost models.

Earlier, Honda and Nissan announced the signing of a memorandum of understanding. In fact, they consolidated their cooperation with the prospect of further merger into a large company. According to Carscoops, the negotiations are not going so smoothly.

Apparently, Honda has set quite tough conditions for Nissan to achieve high profits for the merger to take place at all. As an alternative, a full takeover is being proposed, but Nissan is not satisfied with this.

Mitsubishi (which, along with Nissan, is in an alliance with Renault) was also involved earlier, but in an observational role. After that, it was reported that Mitsubishi was not interested in participating. Although the manufacturer has not yet commented on the process.

In addition, Nissan is worried about the popularity of its low-cost cars, which are produced in Mexico for the US market. Future tariffs could raise prices, make cars less popular and reduce revenues even more.