Nissan’s leadership change appears necessary for Honda to negotiate. The Hondas’ willingness to continue negotiations depends on a change in leadership at Nissan.
Reportedly, Honda Motor Co. is open to reviving merger discussions with Nissan Motor Co., only if the current CEO, Makoto Uchida resigns, the Financial Times said.
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Last week, the previously proposed merger talks tumbled, although now, the negotiations seem to be based on whether there is a change in leadership at Nissan or not, Reuters said.
Uchida was one of the greatest advocates with Nissan for a deal with Honda although relations fell as Honda became fed up with the speed of Nissan’s restructuring, according to the Financial Times.
Honda would be ready to rekindle negotiations under a new CEO who can manage internal opposition in a better manner, the Financial Times reported.
Uchida has displayed his want to remain with Nissan until 2026 but is now feeling pressure to resign over the next few months from partner Renault and board members following messing up negotiations for a $58bn deal, Car Dealer Magazine said.
“If discussions about business integrations arise again, we will not completely rule out the possibility of resuming the discussions,” Honda said.
The quick fall of the Honda deal has left Nissan in a rush to seek out an alternative partner to maintain its survival. This collapse has left Nissan with low sales and shadowing debt repayments, according to the Financial Times.
