According to the Financial Times’ source, the talk of merging Japan’s second and third-largest automakers, Honda Motor and Nissan Motor, will resume and potentially create a $60 billion firm. However, Nissan CEO Makoto Uchida must step down.
Nisson has faced several challenges in the past few years, such as a drop in earnings due to a lack of hybrid models in the US and competition from China. Uchida was also under pressure due to his failure in management and to raise sales..
The previous merging negotiation failed last week as the legacy automaker’s pride refused to let itself become a subsidiary of Honda. Nevertheless, the FT report stated that Honda has agreed to negotiate with Nissan again, but with someone who has high tolerance from internal opposition. Honda CEO Toshihiro Mibe also confirmed that his company will not launch a hostile takeover bid.
Currently, Nissan is trying to make a turnaround by reducing its workforce by 9,000 people and its global manufacturing capacity by 20%. Uchida also confirmed his intention to stay until 2026 despite being pressured by the board members and French partner Renault to step down.
