Nissan to reportedly reject Honda's merger terms

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A proposed merger between Nissan and Honda is on the brink of collapse after Nissan supposedly rejected Honda's latest proposal. The initial plan, announced in December, envisioned a combined holding company structure. However, Honda reportedly recently proposed making Nissan a subsidiary, a move deemed unacceptable by Nissan's board.

While both companies claim discussions are continuing, and a decision is expected by mid-February, the rumoured disagreement casts serious doubt on the deal's future. A combined entity would create the world's third-largest automaker, making the potential failure a major setback.

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R32 Reborn: Nissan electrifies iconic GT-R

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Nissan showcased a one-off electrified R32 Skyline GT-R at the 2025 Tokyo Auto Salon from January 10−12. The R32 EV project, led by electric vehicle engineer Ryozo Hiraku, aimed to preserve the R32's driving experience while electrifying it. The EV ran on two 160kW motors and a 62kWh battery borrowed from the Leaf Nismo RC02 to target a similar performance to the original.  

The R32 EV retained the look of the original with a Gun Grey metallic finish, Recaro seats, digital refresh for the original gauge clusters, simulated engine sounds and gear shifts, and paddle shifters to mimic the original driving experience.

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Honda and Nissan merge to combat declining fortunes

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Honda, Nissan, and Mitsubishi are exploring a merger to counter declining sales and the rising electrification costs. This move follows years of declining profitability for Nissan, culminating in a 73% drop in first-quarter 2024 net profit. Nissan's market share has also eroded, particularly in the US electric vehicle market, holding a mere 2.4% share. To address this, Nissan recently announced a restructuring plan involving job cuts and capacity reductions.

A combined entity—led by Honda—could generate significant revenue and operating profit. However, past auto industry mergers have often been unsuccessful due to integration challenges and cultural clashes. This merger aims to avoid these pitfalls by prioritizing a slower integration process and maintaining a holding company structure.

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Nissan's Leaf EV is 'here to stay'

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The Nissan Leaf brand seems to have been in limbo. There are reports that the compact electric hatchback will evolve into a different vehicle or that the Leaf brand will disappear entirely. During a media event in Tennessee last week, Aditya Jairaj, Nissan's director of EV marketing and sales strategy, said the "Leaf is here to stay."

The current Leaf recently received a refresh. And it's considered one of the least-expensive EVs on the market. But will it keep its form factor? Another Nissan spokesperson confirmed with CNET that "with time, design evolves." This confirmation coincides with reports that the Leaf could become a larger SUV.