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Honda-Nissan merger talks: Can a leadership shake-up revive the deal?

Michael Olabode Williams by Michael Olabode Williams
February 22, 2025
in News, Premium
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Honda Nissan merger talks

Honda Nissan merger talks

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Honda Motor Co. is open to reviving merger talks with Nissan Motor Co., but under one condition—Nissan CEO Makoto Uchida must step down, according to sources cited by the Financial Times. If successful, the deal could create the world’s fourth-largest automaker, a move seen as critical as competition from China and the EV shift intensify.

Why the Talks Collapsed

The proposed $60 billion merger fell apart last week, largely due to resistance from Nissan’s leadership. The company, struggling with weak hybrid sales in the U.S. and rising Chinese competition, rejected Honda’s initial plan to make it a subsidiary. Insiders suggest Nissan’s reluctance to confront its internal challenges played a key role in the breakdown.

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Despite the setback, Honda CEO Toshihiro Mibe has reportedly left the door open for further discussions—if Nissan’s leadership changes. “We are not looking for a hostile takeover,” Mibe emphasised.

Nissan’s Path Forward

Under pressure to turn the company around, Nissan has announced a restructuring plan, including 9,000 job cuts and a 20% reduction in global production capacity. The company is expected to provide further details next month.

Meanwhile, boardroom discussions about Uchida’s future are gaining momentum. Though he has signaled intentions to remain until 2026, mounting pressure from investors and Renault, Nissan’s key alliance partner, could force an earlier exit.

What’s at Stake?

The potential Honda-Nissan merger comes at a crucial time for Japan’s auto industry. With China leading the EV revolution and Western automakers forming strategic alliances, the fate of this deal could reshape the global automotive landscape.

For Nissan, a leadership shake-up might be the key to reigniting merger talks and securing its place in the future of mobility.

Read more on How Nissan’s pride and Honda’s impatience drove a $60bn merger to ruin

Tags: HeadlineHondaNissan

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