Had Failed, Merger Honda And Nissan Will Come True?

Talks about the merger of Nissan and Honda. (Photo: Nissan)

The merger between two Japanese automotive manufacturers, namely Honda and Nissan, has ended, one of the reasons is that Honda wants to make Nissan a subsidiary.

However, news of the merger of the two has now returned. Based on a report from Carscoops, quoted on Thursday, March 6, a recent report shows that Nissan still wants to cooperate with Honda after initial negotiations failed last February.

The brand is in a precarious financial position and seems willing to do anything to survive. This could include the sacking of current CEO Makoto Uchida, who has led the brand since 2019.

According to a report from Nikkei Business, it is understandable that if Nissan decides to take investment from Honda, Uchida can be eliminated. This is reinforced that he said he would not hinder the committee until shareholders decided to work.

According to Nissan insider, the nomination committee will meet on March 6 to discuss the next steps. If Uchida is removed, current financial chief Jeremy Papin can take over for a while. He could be assigned to lead the new negotiations with Honda.

In addition, based on a report from Bloomberg, Uchida is eager to solidify Nissan's business before he leaves his post.

The Emergence of the name Foxconn

After the cancellation of the Honda and Nissan mergers in February, the name Foxcoon also emerged at the forefront of merging with Nissan. It is understood that Taiwan's giant potential interest in eating the automaker last year was one of the reasons why Japanese authorities reportedly pressured Honda to work closely with its competitors, who wanted to ensure Nissan remained a Japanese company.

Nissan needs Partners

After negotiations between Nissan and Honda to develop a joint holding company failed, Uchida had said it would be difficult for Nissan to survive without a partner.

He said that in the current situation, it was difficult to keep up with the competition only from Nissan himself, so the company discussed seriously about Honda's proposal.

"We are not sure how much Nissan's independence will be guaranteed and whether our potential will be fully realized if Nissan becomes a wholly owned subsidiary by Honda," concluded Uchida.