Reuters: Here’s why the Honda–Nissan deal fell through

Reports from Japan shed light on yet another reason why Nissan decided to abandon merger talks with Honda.

Apparently, Honda executives asked Nissan to adopt the company’s own hybrid powertrains for its entire model range. That essentially meant shelving Nissan’s own e-Power hybrid system and making the available engine options the same across the two brands. Not eager to let go of its brand identity, Nissan scrapped the deal.

Financial Times has an interesting extra detail to report. According to the publication, Makoto Uchida, the CEO of Nissan Motor Corporation, had initially supported the alliance and tried to strike a mutually beneficial agreement. However, when he realized that the conditions of the merger weren’t in favor of Nissan, he reportedly vetoed the deal. In return, Honda asked for Uchida’s resignation from office so that the talks might continue.

There has still been no comment from either party yet, but with Uchida still at the rudder, we suppose the deal fell through.