Honda is reportedly eager to restart merger negotiations with Nissan, after recent talks fell through. A key condition for Honda’s renewed interest is Nissan CEO Makoto Uchida stepping down. Honda's frustration was evident over Nissan's slow response and demand for equal status, while Honda wanted greater control. With Nissan facing significant financial challenges and market competition, the pressure on Uchida to resign is building as discussions about his departure are ongoing among board members and stakeholder Renault.
I do regret it ended this way," Honda president Toshihiro Mibe said after the merger talks broke down last week. That said, the takeover bid could be renewed if Uchida steps down, according to people familiar with Mibe's thinking.
Nissan's dire situation stems from its lack of hybrid models in the United States, competition from local rivals in China and piling interest rates from loans.
According to a person familiar with the talks quoted by the FT, Nissan's board of directors has already begun informal discussions over the timing of Uchida's exit.
Honda wanted the upper hand, and for good reason, with Nissan's financials looking increasingly dire.
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