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Honda Open to Reviving Merger Talks with Nissan — But Only Under New Leadership

By  |  February 18, 2025

Honda is willing to restart discussions on a potential merger with Nissan, but only if Nissan’s CEO, Makoto Uchida, steps down, according to sources cited by The Financial Times. If revived, the deal could create the world’s fourth-largest automaker, reshaping the global car industry.

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    Uchida had been a key proponent of the proposed merger within Nissan. However, tensions reportedly escalated between him and Honda’s CEO, Toshihiro Mibe, as Honda grew increasingly frustrated with the pace of Nissan’s internal restructuring and its financial difficulties, per The Financial Times. This friction ultimately contributed to the collapse of negotiations.

    One major sticking point in the talks was Honda’s insistence that Nissan become a fully owned subsidiary rather than forming a holding company where both firms would operate on equal terms. According to a person familiar with the situation, Honda would be open to resuming discussions under a new Nissan CEO capable of overcoming internal resistance to the deal.

    Uchida, who has expressed a desire to remain in his role until 2026, is facing mounting pressure from Nissan’s board and its alliance partner Renault. Board members have reportedly begun informal talks on the timing of his potential departure after negotiations for a $58 billion merger fell apart, The Financial Times reports.

    Read more: $60 Billion Nissan-Honda Merger Falls Apart

    Despite the previous breakdown in discussions, Honda remains interested in Nissan’s connections with Mitsubishi Motors, particularly for its expertise in plug-in hybrid technology and strong presence in Southeast Asia. These factors continue to make Nissan an attractive partner for Honda as the automotive industry shifts toward electrification.

    Mibe, addressing the media after the talks collapsed, acknowledged the disappointing outcome, stating, “I do regret it ended out this way.” However, according to sources familiar with his position, any renewed discussions would require Uchida’s exit.

    Honda has not ruled out reopening negotiations entirely. “If discussions about business integrations arise again, we will not completely rule out the possibility of resuming the discussions,” the company stated.

    Investor reaction to the news was immediate—Nissan’s stock rose by 4%, while Mitsubishi Motors saw a nearly 7% increase. In contrast, Honda’s shares dipped by 0.5%, reflecting the market’s cautious stance on the potential merger.

    Source: The Financial Times