There will be no merger between Nissan and Honda.

Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. announced they have agreed to terminate discussions of business integration between the two companies.

This news comes less than two months after the companies announced the signing of a memorandum of understanding on Dec. 23, 2024, indicating they were discussing a merger.

A news release said the companies discussed various options and that Honda proposed becoming the parent company and Nissan becoming its subsidiary.

“As a result of these discussions, both companies concluded that, to prioritize speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU,” the news release said.

While talks of a merger are off, collaboration remains on the table.

“Going forward, Nissan and Honda will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles, striving to create new value and maximize the corporate value of both companies,” the news release said.

The two Japanese automakers employ thousands of Canadians.

Honda Canada employs approximately 19,000 people, including at some 280 Honda and Acura dealerships across the country and some 4,200 employees at the Honda of Canada Mfg. assembly plant in Alliston, Ont. The Honda Canada headquarters are in Markham, Ont.

Honda is also developing four manufacturing facilities across Ontario to support electric vehicle manufacturing. The company anticipates two of those facilities, an EV assembly plant and a battery manufacturing plant in Alliston, will create a minimum of 1,000 jobs.

Nissan Canada directly employs approximately 450 full-time staff in offices in Vancouver, B.C., Calgary, Alta., Mississauga, Ont., and Kirkland, Que., which doesn’t include the employees at some 209 independent Nissan and 39 Infiniti dealerships in Canada.