With Nissan merger stalled, Honda confronts its own profit struggle

Neither company can match Toyota's margins on autos

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Honda President and CEO Toshihiro Mibe had envisioned reaching a 3 trillion yen operating profit in union with Nissan. (Source photos by Nikkei)

KAZUHIRO NOGUCHI

TOKYO -- The breakdown in merger talks between two of Japan's biggest automakers leaves Honda Motor without the driving force behind what it had hoped would be a 1 trillion yen boost to profit.

While Honda had pressed the smaller Nissan Motor to come up with a restructuring plan, Honda's own automobile business is also mired in low profitability.

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