Automotive
If you’ve been following the on-again, off-again saga of a potential Honda-Nissan merger, you’d be forgiven for feeling like you’re watching an international tariff dispute—one day it’s happening, the next it’s dead, then suddenly it’s back on the table. Now, with Nissan’s CEO Makoto Uchida reportedly on his way out, it looks like the merger discussions may be making yet another comeback.
For Nissan, the idea of merging with Honda once seemed like a lifeline. The company has been struggling for years, still trying to regain its footing after the Carlos Ghosn scandal and an uphill battle against its domestic and Chinese competitors. Earlier this year, when merger talks surfaced, it seemed like a strategic move to stabilize Nissan’s future. But just as quickly as discussions gained traction, they fell apart—mostly because Nissan wasn’t thrilled about the idea of becoming a subsidiary to Honda. Nissan execs apparently went as far as calling the idea “insane.”
But with Uchida reportedly stepping down within the week, a new CEO could bring fresh momentum to the talks. And this time, Nissan may not have much leverage to resist Honda’s terms. An inside source told Nikkei that while it’s not certain whether Nissan will become a wholly owned subsidiary, the automaker is likely warming up to Honda’s investment.
Of course, Honda isn’t Nissan’s only option. The struggling automaker is also eyeing Foxconn, the Taiwanese electronics giant, as a potential partner—likely to bolster its EV ambitions. Meanwhile, Mitsubishi’s future in the Nissan-led alliance is also uncertain, with some speculation that the brand could be left out of any new deals entirely.
It’s hard to ignore the timing here. Nissan’s issues have been mounting since the fallout from Ghosn’s departure in 2018, and while the company has made efforts to recover, it hasn’t been enough. The EV landscape is shifting fast, Chinese automakers are becoming serious competitors, and both Toyota and Honda continue to dominate in key markets. Without strong leadership and a solid partnership, Nissan risks falling even further behind.
The big question now: Will a new CEO finally push the merger through? Or will this saga keep going in circles like a bad trade war? Given Nissan’s recent history, we wouldn’t be surprised if this drama keeps unfolding. Stay tuned—because just like tariffs, mergers like these never seem to have a real finish line.
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