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    Home - Automotive (Car Deals & Maintenance) - A Nissan-Honda merger could be back on the table
    Automotive (Car Deals & Maintenance)

    A Nissan-Honda merger could be back on the table

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    A Nissan-Honda merger could be back on the table
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    Nissan’s turbulent financial state may be heading toward a new chapter, as reports indicate that CEO Makoto Uchida is set to resign within the week, according to reporting from Nikkei and The Financial Times. His departure could reignite merger discussions with Honda, which previously collapsed over disagreements on ownership structure, Reuters reported.

    Related: What is the Jeep Wrangler 4xe Backcountry?

    Nissan’s leadership in flux

    Since taking the helm in 2019, Uchida has led Nissan through a period of instability, attempting to rebuild the company following the dramatic exit of former CEO Carlos Ghosn. However, with Nissan’s financial struggles persisting and competition from Chinese EV manufacturers mounting, the company’s board appears ready for a leadership overhaul.

    Makoto Uchida, President and CEO of Nissan motor corporation, attends a joint press conference with Toshihiro Mibe, President and Representative Executive Officer of Honda, and Takao Kato, President and CEO of Mitsubishi Motors (not pictured), in Tokyo on December 23, 2024.

    PHILIP FONG/Getty Images

    Sources inside Nissan told Japanese newspaper Nikkei that significant personnel changes, including at the top level, are imminent. Uchida’s inability to secure a merger agreement with Honda is reportedly a key factor in his exit. His potential replacements include chief financial officer Jeremie Papin, chief planning officer Ivan Espinos, and chief performance officer Guillaume Cartier. It remains unclear whether the next CEO will be an interim or permanent appointment.

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    A second chance at a Honda deal?

    Earlier this year, Honda and Nissan engaged in formal merger discussions, which seemed like a lifeline for Nissan. However, the talks collapsed when Honda proposed that Nissan become a subsidiary rather than an equal partner in a newly formed conglomerate. Nissan executives balked at the idea, calling it an “insane decision.”

    The Nissan Motor Co. headquarters in Yokohama, Japan, on Friday, May 31, 2024. Nissan is planning an autonomous vehicle ride-share service for Japan in three years to address a dearth of taxi drivers amid the nation’s graying population.

    Bloomberg/Getty Images

    But, with Uchida on the way out, Nissan may be more open to reconsidering Honda’s terms. A source inside Nissan told Nikkei that while a full subsidiary arrangement may not be certain, “the talks will probably proceed in the direction of accepting Honda’s investment.” If true, this could mean a major shift in Nissan’s willingness to cede some control in exchange for financial stability.

    Related: 10,000 miles in the best $100K sports car you can buy.

    Other merger possibilities remain

    Beyond Honda, Nissan is reportedly exploring other potential partners. According to Reuters, the automaker is in discussions with Taiwanese electronics giant Foxconn, likely with an eye on advancing its electric vehicle development. Nissan’s longtime alliance partner Mitsubishi also faces uncertainty regarding its role in future partnerships.

    Can Nissan turn things around?

    Signage is pictured outside the headquarters of Japanese automaker Toyota in Tokyo on May 10, 2023.

    YUICHI YAMAZAKI/Getty Images

    Nissan’s financial struggles stem from years of internal instability, worsened by Ghosn’s abrupt departure and legal troubles. The automaker has since worked to rebuild its brand and operations, but challenges remain. Rising competition in the EV market, particularly from China, and strong domestic rivals like Toyota and Honda continue to pressure Nissan’s market position.

    Final thoughts

    If Nissan’s next CEO can successfully navigate merger negotiations — whether with Honda, Foxconn or another player — it could provide the company with much-needed financial and technological support. Whether that means Nissan will remain a standalone brand or become part of a larger entity is still up in the air, but one thing is certain: big changes are coming for the legendary Japanese brand.

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