Honda-Nissan Merger Fails; Stocks Plummet

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Honda proposed to make Nissan its subsidiary, moving away from the planned equal partnership merger worth $60 billion.

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Market response showed immediate impact - Nissan's stock fell 4.9% while Honda gained 8.2% on the Tokyo Stock Exchange.

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The numbers tell the story: Honda's worth $51.90 billion compared to Nissan's 1.44 trillion yen in market value.

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Together, Honda and Nissan planned to match Tesla and BYD by producing 10 million cars yearly to compete in electric vehicles.

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Nissan struggles with its business plan - cutting 9,000 jobs and reducing car production by 20% across factories worldwide.

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Money expert Vincent Sun points out Nissan faces extra risk from possible U.S.-Mexico car taxes compared to Honda and Toyota.

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Renault, which owns 36% of Nissan, stays open to merger talks but watches closely as terms keep changing.

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Business analyst Christopher Richter says Honda wants control over Nissan or walks away from the deal.

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Both car makers will decide by mid-February, but inside sources say Nissan plans to end talks soon.

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