Honda is reportedly willing to revive takeover discussions with Nissan, aiming to create the world’s fourth-largest automaker, but with a significant condition—Nissan CEO Makoto Uchida must step down. This comes after the collapse of merger talks earlier this month, which had aimed to combine Honda, Japan’s second-largest automaker, with Nissan, the third-largest, to create a $60 billion car manufacturing giant.
The proposed merger faltered when the two companies failed to agree on key terms. Honda, frustrated by Nissan’s financial troubles and slow restructuring, withdrew from negotiations, casting doubt on the future of the deal. However, Honda’s recent shift in stance signals a willingness to re-enter talks, but under new leadership at Nissan.
Uchida, a vocal advocate for the merger, has faced increasing pressure, both internally and from Nissan’s alliance partner Renault, to step down. His handling of the merger talks and Nissan’s restructuring has come under scrutiny, with reports indicating that Nissan’s board is already informally discussing the timing of his departure.
Honda’s move to reinitiate discussions, contingent on Uchida’s exit, highlights the growing tensions between the two automakers. A new leader at Nissan could smooth over internal conflicts and help guide the company through its restructuring, potentially paving the way for a future merger.
