Honda sets conditions for Nissan to restart merger negotiations
Honda is reportedly set to renegotiate a merger with Nissan to establish the world’s third-largest automobile group, on the condition that Nissan’s CEO, Makoto Uchida, resigns.
The Honda-Nissan merger agreement began in December last year but quickly collapsed in early 2025. Although negotiations officially ended last week, reports suggest that the merger deal could still be revived.
According to Reuters, citing Financial Times, Honda is willing to resume merger talks with Nissan if CEO Makoto Uchida steps down from his leadership role.
Reports indicate that Makoto Uchida is facing significant pressure from Nissan’s top management as the company has struggled with declining sales and profits for several years. Financial Times also noted that Nissan’s board of directors has already started informal discussions regarding the timing of Uchida’s departure as CEO.
However, Uchida himself hopes to remain in the leadership position until 2026. According to Reuters, the months following the failed merger will be crucial in determining his future at Nissan.
On Honda’s side, the company has expressed a preference for negotiating with a Nissan executive who demonstrates better management capabilities. Previously, Honda was reportedly unimpressed with Nissan’s efforts to improve its financial situation before the merger discussions began.
Another key reason for the breakdown in negotiations was Nissan’s strong sense of independence. Reuters reported that Nissan was dissatisfied with the proposal to become a subsidiary of Honda under the merger agreement.
Meanwhile, Motor1 reported that the failed merger deal with Honda has frustrated some Nissan shareholders, including Renault. The French automaker had reportedly planned to sell a significant portion of its 36% stake in Nissan through the merger.
Following the collapse of merger talks, Nissan has continued implementing restructuring measures to optimize costs. The company plans to cut 9,000 jobs and reduce global production by 20% in the 2026 fiscal year.
Additionally, Nissan is seeking new partners to strengthen its financial position. Among potential candidates, tech giant Foxconn has expressed interest in collaborating with Nissan while emphasizing that it has no intention of acquiring the Japanese automaker.
Original article & pictures by AutoPro
