🛟 Nissan: And Other News About Honda

February 13, 2025

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The Gist

Honda and Nissan called off their $60 billion merger after Nissan balked at being made a subsidiary. Nissan now faces yet another restructuring, plant closures, and an uncertain future while flirting with Foxconn as a potential partner.

Meanwhile, Honda posted solid 2024 sales, with electrified models making up over 25% of their mix. Oh, and if you’re driving a 2023-2025 Honda Pilot or a 2021-2025 Acura TLX Type S, check your mail—Honda just issued a recall on nearly 300K vehicles. Business as usual in the auto world: big shifts, big moves, and dealers making it all work, as always.

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Nissan and Honda’s Merger Hits the Skids—What’s Next?

We woke up today, and the headlines were absolutely drenched in Nissan-Honda “abandon ship” news. If you’ve been holding your breath for a $60 billion automotive megadeal, you can go ahead and exhale. Nissan and Honda are officially breaking up before they were ever really together.

What Happened?

The two automakers had been in talks to form what would have been the fourth-largest car group in the world, right behind Toyota, Volkswagen, and Hyundai. But in the end, it turns out Nissan wasn’t too keen on Honda’s grand plan to make them a subsidiary, and the deal fell apart.

According to Honda CEO Toshihiro Mibe, the merger would have required some "quick pain," but the risk of ongoing uncertainty was too much to justify pressing forward. Meanwhile, Nissan, still recovering from its Carlos Ghosn-era drama, seems to be in desperate need of a dance partner—but not that desperate.

Christopher Richter, a Japan autos analyst at CLSA, summed it up: “Honda is pretty confident and has a lot in their favor, whereas Nissan is in a bad place. They don’t have a dance partner right now. They probably need to think about doing something different.”

The Fallout: Nissan’s Not-So-Great Day

In case a failed merger wasn’t enough, Nissan also announced yet another downward revision of its full-year forecast (that’s three times now) and another round of cost-cutting. The company plans to shut down a plant in Thailand by June and is eyeing more closures.

Other key points:

  • Nissan’s market cap is nearly five times smaller than Honda’s.

  • Nissan’s quarterly earnings took a dive—again.

  • The company is now considering working with new partners, with Taiwan’s Foxconn emerging as a potential investor.

Honda’s 2025 Numbers: Steady, But Not Spectacular

While Nissan is scrambling, Honda is looking at its 2025 numbers with a mix of confidence and caution. The company posted a 5% rise in Q3 profits, largely thanks to strong motorcycle sales and a weak yen. U.S. car sales remain strong, though China is proving a tough battlefield against domestic EV brands.

Key stats:

  • 2024 total Honda sales: 1,291,490 units (+11.1%)

  • Electrified models: Represent 25%+ of total Honda sales

  • Best sellers: CR-V (record 402,791 units), Pilot, Odyssey

  • Hybrid-electric sales: 308,554 units (record high)

Lance Woelfer, VP of Auto Sales at American Honda, put it simply: “Our strong sales results in 2024, including record sales of light trucks, hybrid-electric, and battery-electric vehicles, is a direct reflection of our commitment to meeting customer demand today, even as we look to the electrified future.”

Oh, and There’s a Recall…

Not exactly the news you want right after reporting strong sales, but Honda has also announced a recall of nearly 295,000 Honda and Acura vehicles in the U.S. due to an issue with the fuel injection electronic control unit (FI-ECU). The problem could cause engine hesitation or stalling—obviously not ideal.

Affected models include:

  • 2023-2025 Honda Pilot

  • 2022-2025 Acura MDX Type S

  • 2021-2025 Acura TLX Type S

If you’ve got one of these, expect a letter in the mail soon. And yes, the fix is free.

ASOTU’s Final Thoughts

Legacy automakers trying to keep up with the EV transition? Shocking. Nissan needing a life raft? Also shocking. But here’s the real deal: Dealers, you already know that big industry shifts are just another Tuesday in the car biz. The Nissan-Honda will-they-won’t-they saga might be over, but the real story is how brands are positioning themselves for the next decade.

For Honda, it’s about steady growth and strong hybrid sales. For Nissan, well... let’s just say “restructuring” is the polite way of putting it. Either way, you’re the ones on the front lines, moving the metal and making the magic happen, no matter how many boardroom shake-ups or strategy pivots come down the pipeline.

So keep your eyes on the numbers, your coffee strong, and your patience endless. We’re right here with you, watching the pieces move and connecting the dots—because we know dealers don’t need lectures, just straight talk and a few well-placed smirks. Stay sharp out there.

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