18.02.2025 09:40
The merger plans of automotive giants Honda and Nissan have come back to the forefront. Honda has put forward a single condition for the merger. Honda announced that they could resume merger talks if Nissan's CEO, Makoto Uchida, steps down from his position.
The previously discussed but not materialized merger plans between Honda and Nissan have been brought back to the table due to the increasing competition conditions in the automotive sector and rising costs. If the merger takes place, it will create a significant power alliance in the automotive industry. However, Honda's management has put forward a condition for this. Honda announced that it is ready to continue discussions for a transfer to form the world's fourth-largest car manufacturer if Nissan's CEO, Makoto Uchida, resigns.
THEY HAD CAUSED DISAPPOINTMENT
In fact, Nissan's CEO, Makoto Uchida, was one of the strongest advocates for an agreement with Honda within Nissan. However, the relationship between Uchida and his counterpart, Toshihiro Mibe, deteriorated as Honda became disappointed with the speed of Nissan's restructuring and the depth of its financial problems.
HONDA WANTS FULL CONTROL
The merger talks broke down after Honda demanded that Nissan be a wholly-owned subsidiary rather than establishing a holding company, and that the two companies be on "equal terms." According to local sources, Honda is ready to revive negotiations under a new boss who can better manage internal opposition. Uchida, who has stated that he wants to stay until 2026, is facing pressure to separate from board members and partner Renault in the coming months after causing the negotiations for the $58 billion mega merger to fail. A person familiar with these talks said that the Nissan board has also begun informal discussions regarding the timing of Uchida's departure.