Honda Motor is open to resuming merger discussions with Nissan Motor on the condition that Nissan CEO Makoto Uchida steps down, the Financial Times reported on Tuesday, citing a source familiar with the matter.
The two Japanese automakers, the country’s second- and third-largest by sales after Toyota Motor, had been engaged in negotiations to form a $60 billion entity. However, those talks collapsed last week, underscoring the challenges faced by legacy carmakers amid intensifying competition from Chinese electric vehicle manufacturers and a shifting global automotive landscape.
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Nissan declined to comment on the FT report, while Honda stated that the information was not something it had officially disclosed.
Uchida has been under mounting pressure as Nissan struggles to recover from years of declining sales and management instability. “Subsequent months would be critical for Uchida and Nissan’s future,” Reuters reported in December, highlighting the CEO’s precarious position.
According to sources previously cited by Reuters, the negotiations with Honda faltered due to Nissan’s reluctance to relinquish control and Honda’s proposal that Nissan become a subsidiary. The FT report indicated that Honda remains willing to revive discussions if Nissan’s leadership changes, suggesting the automaker seeks a more cooperative executive to navigate internal resistance.
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Amid growing uncertainty, Nissan has been working on a restructuring plan that includes reducing its global workforce by 9,000 and cutting manufacturing capacity by 20%. The company stated last Thursday that an update on its turnaround strategy would be provided within a month.
Although Uchida has signaled his intention to remain as CEO until 2026, the FT reported that he is facing increasing pressure from board members and Nissan’s alliance partner, Renault (RENA.PA), following the failure of the merger talks. Nissan’s board has also begun informal discussions regarding the timing of his potential departure, the report added.