February 19, 2025 – Honda and Nissan have decided to halt their merger talks last week, barely two months after the two companies reached an exploratory cooperation agreement to launch a new holding company in 2026.
According to a report by the Financial Times yesterday, sources close to the merger negotiations revealed that Honda would be willing to resume talks with Nissan and form the world’s fourth-largest automaker if Nissan’s CEO, Makoto Uchida, steps down.
Nissan declined to comment on the matter, while Honda stated that the report was not an official announcement from their side.
Previously, Reuters reported that the merger talks fell apart due to Nissan’s arrogance and lack of awareness of its predicament, coupled with Honda’s proposal to turn Nissan into a subsidiary.
The Financial Times report mentioned that Honda would be open to resuming negotiations with a Nissan executive who can more effectively manage internal dissent. Honda CEO Toshihiro Mibe stated last week that his company has no plans for a hostile takeover of Nissan.
Nissan has been implementing a transformation plan that involves laying off 9,000 employees and reducing its global manufacturing capacity by 20%. The company announced on Thursday that it will provide an update on this plan within a month.
It’s worth noting that the report also mentioned Uchida’s intention to remain in office until 2026. However, due to the failed negotiations with Honda, he is now facing pressure from board members and French partner Renault to resign in the coming months. Informal discussions regarding Uchida’s departure have also begun within the Nissan board.
