Honda Considers Renewing Merger Talks with Nissan, But Leadership Change is Key

Honda Motor is reportedly open to resuming merger discussions with Nissan Motor, but only if Nissan’s Chief Executive Officer, Makoto Uchida, steps down from his position. The Financial Times, citing an individual familiar with the matter, disclosed this development on Tuesday.

The proposed merger, which would create the world’s fourth-largest automaker valued at approximately $60 billion, had initially been driven by mounting challenges for both companies. Nissan, struggling with plummeting earnings due to a lack of hybrid models in the U.S. and growing competition from Chinese rivals, had sought to bolster its position through the deal. However, negotiations collapsed last week, deepening uncertainty for Nissan and underlining the increasing pressure on traditional automakers facing disruption from emerging Chinese giants.

Honda Denies Hostile Takeover Intentions

In response to the Financial Times report, Nissan declined to comment, while Honda stated that the claims had not come from the company.

Toshihiro Mibe, Honda’s CEO, recently clarified that his company had no intention of pursuing a hostile takeover of Nissan. However, Honda is willing to reopen talks if Nissan appoints a leader capable of managing internal resistance to the merger.

Nissan’s Leadership Crisis Intensifies

The collapse of merger discussions has further strained Nissan’s leadership. Makoto Uchida, who has been under increasing pressure to reverse years of declining sales and management turmoil, faces mounting calls to resign from both Nissan board members and its French partner, Renault.

Despite these challenges, Uchida has indicated his intention to remain as CEO until 2026. However, Nissan’s board has begun informal discussions about the timing of his departure, signaling that a leadership change could come sooner.

Nissan’s Ongoing Turnaround Efforts

As part of its ongoing turnaround strategy, Nissan plans to cut 9,000 jobs and reduce its global manufacturing capacity by 20%. The company has announced that it will provide an update on its progress within the next month.

The future of a potential Honda-Nissan merger now appears closely tied to the outcome of Nissan’s leadership deliberations. If Uchida steps down, Honda may return to the negotiating table—potentially reshaping the global automotive landscape.

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