Honda May Still Agree to Merge if Nissan’s CEO Steps Down

The Honda-Nissan merger, which had been under discussion since last year, has now collapsed due to disagreements over control and strategy. However, there is still a possibility of revival, depending on changes in Nissan’s leadership.

Honda is open to restarting negotiations, but only if Nissan’s CEO, Makoto Uchida, steps down. Uchida is under increasing pressure from Nissan’s board, as well as from Renault, which owns 36% of Nissan and is unhappy with the failed merger. There are reports that Renault is considering selling a significant portion of its Nissan shares.

At the same time, Nissan is looking for alternative partnerships. The Taiwanese tech company Foxconn has shown interest in working with Nissan, though it is not seeking a complete takeover. Nissan has also reached out to private investors and technology firms for financial support as it struggles with declining global sales.

Nissan’s financial troubles have led to major restructuring efforts. The company has adjusted its turnaround plan, now planning to cut 6,500 jobs, after announcing a 9,000-job reduction. Additionally, Nissan will reduce its global production capacity by 20% by the 2026 fiscal year.

The initial merger discussions fell apart when Honda proposed making Nissan a subsidiary, a move Nissan strongly opposed. Honda also felt that Nissan was not taking its financial problems seriously or making changes fast enough.

Despite the current breakdown of talks, the situation at Nissan remains uncertain. If leadership changes occur, negotiations with Honda could resume. The merger would also affect Mitsubishi, which is closely tied to Nissan through its alliance with Renault. Experts believe that Mitsubishi’s future depends on Nissan’s recovery, making any potential deal significant for all three companies.