Nissan Reportedly to Re-approach Honda for Merger

KatadataOTO – The merger agreement between Nissan and Honda was confirmed to be canceled last February. This is because the two companies could not reach an agreement desired by each party.

However, it appears Nissan is still collaborating with Honda to save itself from bankruptcy. They are even reportedly ready to take various measures to continue surviving in the future.

One of them is by firing Makoto Uchida, their current Chief Executive Officer who has led the company since 2019.
Reported by Carscoops, the decision to fire Uchida is considered reasonable. This is because he is considered the cause of the failed merger between Nissan and Honda.

According to him, the Nissan and Honda merger would be detrimental because it would make them a subsidiary. Whereas at the beginning of the talks, the two companies were supposed to be equal and mutually beneficial partners.

Photo : Reuters

"We are not sure how much of Nissan's independence would be guaranteed and whether the company's potential could be realized if it became a wholly-owned subsidiary of Honda," said Uchida, as reported by Carscoops (06/03)

However, he also once revealed that he was ready to be fired if the Nissan Committee, the Board of Directors, and the shareholders wanted it.
A meeting will reportedly be held soon to determine the company's direction. Then if Uchida is indeed removed, it is likely that Jeremy Papin, the Chief Financial Officer, will replace him temporarily.

He would then be tasked with conducting new negotiations with Honda and getting out of the current difficult situation.

Uchida was reportedly struggling to stabilize Nissan's business before leaving his position. But he has just told shareholders that the company is likely to post a net loss of $536 million for the fiscal year ending in March.

Besides Honda, Nissan is actually reported to still have several other solutions. One of them is by partnering with Foxconn, a technology company from Taiwan.

Photo : KatadataOTO

Currently, Foxconn produces Apple's iPhones and is trying to expand its business into electric vehicles. They even made an offer to Nissan, but it was rejected in December 2024.

Unfortunately, until now there has been no development in the talks between Nissan and Foxconn.