Honda and Nissan on Thursday terminated a memorandum of understanding under which the two automakers had been discussing a merger. 2024 Nissan AriyaWhen talks started, both automakers had discussed transferring their shares to a joint holding company, in which Honda would appoint the majority of directors and a CEO. But Honda later proposed making Nissan a subsidiary. The merger would've been a lifeline for Nissan, which has been struggling with declining sales globally, particularly in the U.S. and China. Nissan also owns 34% of Mitsubishi, and the two automakers collaborate as part of an alliance with Renault, but Mitsubishi was reportedly planning to stay out of the proposed merger with Honda.