Honda signals readiness to revive Nissan merger talks under new leadership
Honda reopens merger talks with Nissan if CEO Uchida steps down
Honda Motor is open to resuming merger negotiations with Nissan Motor—potentially forming the world’s fourth-largest automaker—but only if Nissan CEO Makoto Uchida steps down.
The two Japanese carmakers, the second- and third-largest in the country after Toyota, had been exploring a $60 billion merger to strengthen their competitiveness amid declining Nissan earnings and growing competition from Chinese automakers, reports Reuters.
The talks collapsed last week, reportedly due to Nissan’s internal resistance and Honda’s proposal to make its smaller rival a subsidiary. The breakdown has further destabilized Nissan, underscoring the mounting challenges for legacy automakers in an industry being reshaped by electric vehicles (EVs) and artificial intelligence (AI).
Nissan’s Challenges and CEO Uchida’s Position
Uchida has faced increasing pressure to improve Nissan’s financial performance after years of declining sales and management instability. The company has struggled to keep pace with the evolving auto market, particularly in the U.S., where its lack of hybrid and EV offerings has hurt competitiveness.
Despite Uchida’s stated intention to remain in his role until 2026, Nissan’s board, along with its French partner Renault, is reportedly reconsidering his leadership in the wake of the failed merger talks. Informal discussions regarding the timing of his potential departure have already begun, though no official decision has been made.
Meanwhile, Nissan is implementing a turnaround plan, which includes cutting 9,000 jobs and reducing global manufacturing capacity by 20%. The company has promised an update on its restructuring efforts within the next month.
Honda CEO Toshihiro Mibe has ruled out a hostile takeover of Nissan, but the possibility of reviving merger talks remains if a leadership change occurs. However, even if discussions resume, both companies will need to navigate the broader challenges facing the global auto industry, including stricter emissions regulations, supply chain disruptions, and increasing competition from tech-driven car manufacturers.
Additionally, Japanese automakers Honda, Nissan, and Mitsubishi announced on Thursday that they are ending discussions on a potential business integration, a plan that had initially aimed to create a joint holding company.
