| Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story in full online here. Honda, Nissan End Deal Talks | Honda and Nissan have officially parted ways, at least for now. When talk of an alliance surfaced about three months ago, it seemed genuinely possible that two of the industry's most recognizable brands would join forces to take on the world. But as the weeks wore on, it became clear the legacy automakers would struggle to see eye to eye. Now they're back where they started — one needs scale to compete on the global stage, the other a lifeline to stay afloat. Honda Chief Executive Officer Toshihiro Mibe tried to be positive, telling reporters on Thursday that "while the outcome is unfortunate, we now have a mutual appreciation of our synergies that can be utilized in our existing strategic partnership." Nissan Chief Executive Officer Makoto Uchida was more forthright when talking about his company's prospects. "It will still be difficult to survive without leaning on future partnerships," he said.  Makoto Uchida. Photographer: Kiyoshi Ota/Bloomberg But when it comes to courting other players, both may find that the pickings are slim and other suitors might not be so amicable. The need to find a partner is particularly acute for Nissan, which has struggled to keep up with the car industry's seismic changes. "At the end of the day, we still believe that Nissan will need support from another big automaker," said James Hong, an analyst at Macquarie Securities Korea. "Without that, it seems to be quite a difficult situation for them." Honda and Nissan formally ended negotiations on Thursday, the mutual parting a clever way for both to avoid the ¥100 billion ($650 million) breakup fee stipulated by the agreement they signed in December. It also reopens the door for Hon Hai Precision Industry, the Taiwanese iPhone maker better known as Foxconn, to solidify its pursuit of Nissan as the company ventures into newer arenas such as electric vehicles to offset stalling smartphone sales. Hon Hai Chairman Young Liu said Wednesday he's open to buying Renault's 36% stake in Nissan. When asked about the comment, Nissan CEO Uchida said he hasn't spoken to anyone from Foxconn's management. New suitors may also enter the picture. KKR is in the early stages of evaluating an equity or debt investment to improve Nissan's financial position, Bloomberg News reported, citing people familiar with the matter. The carmaker's financial woes were thrust into the spotlight late last year, when it announced a plunge in net income and plans to cut jobs and manufacturing. Nissan warned investors Thursday that it's not out of the woods yet, lowering its full-year outlook and laying out restructuring plans. "Nissan needs a financially stable partner in Honda's stead," Bloomberg Intelligence senior auto analyst Tatsuo Yoshida said. The company has struggled with revolving-door leadership in the years since the ouster of Carlos Ghosn, who forged the original alliance with Renault and Mitsubishi. Nissan has also been weighed down by an outdated lineup of unpopular cars — something that's particularly problematic in China, where domestic automakers are winning market share with an array of affordable, tech-laden electric cars, and in the US, where hybrids are back in vogue. A deal would have created one of the world's biggest carmakers, giving Honda and Nissan the scale to compete globally and, in Japan, the fire power to take on Toyota. The world's biggest carmaker has stakes in Subaru, Suzuki and Mazda, creating a powerhouse of brands backed by Toyota's top-notch credit rating. Left on their own, however, Honda and Nissan are languishing in eighth and ninth place when ranked by global deliveries, and in danger of being overtaken by China's Geely Automobile, whose sprawling empire includes brands like Zeekr, Volvo and Lotus. — By Nicholas Takahashi - Terms of Honda-Nissan deal were 'unacceptable,' Renault says.
- Nissan warns of losses and outlines restructuring plans.
- KKR is considering investing in Nissan.
 Elon Musk and US President Donald Trump in the Oval Office of the White House. Photographer: Aaron Schwartz/CNP The State Department's procurement forecast removed the mention of Elon Musk's Tesla in relation to a planned $400 million armored EV purchase after reports emerged about it on Wednesday. The December version of the document had included an "Armored Tesla" budget item that would span five years and start in 2025, however the document was revised to remove the company's name. This followed reports of the EV maker's moniker on the procurement document from Drop Site News and the New York Times. | 
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