The merger discussions between Honda and Nissan are gaining renewed attention. Earlier this month, Honda CEO Toshihiro Mibe expressed disappointment over the stalled negotiations but indicated that talks could resume if Nissan replaced its CEO. Multiple Japanese media outlets have since reported that Nissan is considering a leadership change.
Reports suggest that Nissan CEO Makoto Uchida is being considered for replacement. He may step down voluntarily, and a list of potential successors is already being discussed. Several media sources, including Nikkei, citing anonymous insiders, have suggested that if a CEO transition occurs, it could reignite merger negotiations with Honda, which collapsed in January.
Nissan’s stock rose 5% after reports of a potential leadership change. Uchida, who became CEO in 2019 after Carlos Ghosn’s departure, has faced criticism for failing to resolve Nissan’s structural issues. The company has struggled to keep pace with global competitors in the transition to electric vehicles, while its aging product lineup has weakened its position in the international market. Nissan has relied on high incentives and discounts to maintain sales, and the potential imposition of new U.S. import tariffs has further compounded its challenges.
Merger talks between Nissan and Honda were called off last month. The proposed agreement would have seen Honda acquire Nissan and integrate their global supply chains, manufacturing, and R&D operations while keeping their brands separate. Following the failed negotiations, concerns among Nissan shareholders regarding the company’s long-term sustainability have intensified. Nissan is projected to report losses of 800 billion yen (approximately $5.26 billion) for the current fiscal year. Industry analysts warn that automakers may struggle to survive without a strategic partnership.
Meanwhile, Renault, Nissan’s largest shareholder, plans to divest its 36% stake. Taiwan’s Hon Hai Precision (Foxconn’s parent company) has expressed interest in acquiring Renault’s shares, and Tesla has also been mentioned as a potential partner for Nissan.
Last year, Honda, Nissan, and Mitsubishi established a global strategic partnership focusing on battery electric vehicles (BEVs) and software-defined vehicles (SDVs). Given the rapidly evolving automotive industry, analysts closely monitor how the relationship between these two Japanese automakers will unfold in the coming months.
