Renault, a French car company that owns a big part of Nissan, decided to stop the merger plan with Honda. According to a Bloomberg report, Renault felt that the deal wasn’t fair because it didn’t include any extra payment, which they wanted, given their investment in Nissan.
Renault owns 36% of Nissan and wanted some extra money since they would be giving up their control. There were worries about how the merger would work. Even though it was called a merger, it seemed more like Honda would take over Nissan.
Honda and Nissan wanted to join forces to compete better against other car brands, especially with the rise of electric vehicles from Chinese companies like BYD. However, Nissan has been facing many challenges, including financial struggles and issues stemming from the arrest of its former chairman, Carlos Ghosn, back in 2018. They are now expecting to lose a lot of money this year.
Renault has shown its support for Nissan’s efforts to recover and said it would keep helping with joint projects.
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