Nissan scraps Honda merger talks, GM cuts 50% of Cruise workforce, automakers eye software-defined vehicles

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1. Nissan walks away from Honda merger talks

Nissan is reportedly walking away from merger talks with Honda after failing to agree on restructuring plans, according to Nikkei Asia.

The reasons: The proposed joint holding company set for 2026, unraveled when Honda suggested making Nissan its subsidiary—an idea Nissan rejected outright.

• Honda then gave Nissan until January’s end to present a turnaround plan, but Nissan’s reluctance to make deeper cuts only widened the divide.

While future collaboration on EVs remains possible, any hopes of creating the world’s next automotive giant are off the table … (Go deeper: 2 min. read)

2. General Motors lays off 50% of Cruise employees as robotaxi business winds down

More than 1,000 employees, including top executives, were laid off this week, following GM’s December decision to stop funding Cruise.

What’s next: Rather than keeping it as a standalone unit, GM plans to integrate some of Cruise’s technology into its Super Cruise hands-free driving system.

The cuts come after mounting safety concerns, including Cruise’s failure to properly report a crash, and rising consumer skepticism about fully autonomous vehicles.

While GM is pulling back on robotaxis—it’s not abandoning automated driving altogether—just shifting focus to a more controlled approach … (Go deeper: 4 min. read)

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3. The future of cars is software-defined—and automakers are all in

By 2035, most new cars will be AI-powered and software-defined, according to a new IBM survey of industry executives.

Driving the news: Automakers are already shifting gears, nearly tripling their R&D budgets for software development as they see massive revenue potential in autonomous driving and in-car subscriptions.

Some, like Hyundai, Kia, and Samsung, are moving fast to integrate vehicles with smartphones, while others are taking a slower approach.

But the takeaway is clear—the future of cars isn’t just about what’s under the hood—it’s about what’s in the code … (Go deeper: 4 min. read)

• The road to 99.999%: eliminating blind spots in automotive visual AI.

• Markets rise on tariff pause, but earnings disappoint.

• Ford exec shuffle puts Andrew Frick over both gas, EV businesses.

• Ford’s F-150 Lightning is falling behind Tesla’s Cybertruck in deepening EV crisis.

• Honda, Hyundai, Ford, Subaru, and Kia EV sales climb in January.

Thanks for reading everyone.

— CDG