Nissan wants to replace Honda with another partner - media
The story of Nissan and Honda merger seems to be getting a new twist. Despite the lack of official statements, numerous media reports indicate that the plan to create a new holding company has been cancelled. Reuters, citing sources familiar with the situation, claims that Nissan CEO Makoto Uchida has already informed his Honda counterpart Toshihiro Mibe that talks on the much-discussed merger have been cancelled.
Here's What We Know
According to Bloomberg, Nissan is already looking for another partner after allegedly failed negotiations with Honda. Nissan would prefer to partner with a technology company based in the US. However, a spokesperson for the Japanese carmaker declined to comment on the information, saying that details about the co-operation with Honda will be revealed by mid-month.
Earlier, there were rumours that Taiwanese technology giant Foxconn was interested in buying part of Renault's stake in Nissan. However, discussions were put on hold when it became apparent that Nissan would prefer to team up with Honda. Bloomberg claims that the iPhone maker still hasn't given up on the idea.
Officially, the talks between Nissan and Honda were for a mega-merger that would have created the world's third-largest carmaker. However, numerous reports published in recent days paint a different picture. Honda allegedly wants to make Nissan its subsidiary but is facing strong opposition from Nissan board members.
For Nissan, the issue of timing plays a crucial role. In late November 2024, the Financial Times quoted two unnamed Nissan executives as saying that the company has "12 to 14 months to survive." Whether this is true or not, time will tell, but time is running out and job cuts are just around the corner. In November, the company announced plans to cut 9,000 jobs and reduce its global production capacity by 20 per cent.
It is reported that Nissan will formally announce its intention to withdraw from the Memorandum of Understanding with Honda next week, ahead of its third quarter earnings report. The memorandum, signed in December, included a huge 100 billion yen ($655 million) cancellation penalty, but if Honda and Nissan mutually decide to part ways without forming a joint holding company, there will be no penalty.
Sources: Reuters, Bloomberg, Financial Times
