According to sources, Honda is reportedly open to resuming merger talks with Nissan, but only if Nissan’s CEO, Makoto Uchida, steps down.
Previously, Honda, Nissan, and Mitsubishi signed a memorandum of understanding (MoU) in December to explore the possibility of a merger. However, after negotiations, the deal fell through due to disagreements over management structure. Honda proposed changing the structure from establishing a joint parent company to a model where Nissan would become a subsidiary of Honda through a stock exchange. Furthermore, Honda was reluctant to include Renault in the alliance and requested that Nissan buy back the shares held by Renault.
Honda also expressed disappointment with Nissan’s slow restructuring pace and its dismal financial situation. Honda’s CEO, Toshihiro Mibe, had asserted that Nissan’s restructuring was a “prerequisite” for the merger. Aside from opposition from Honda, CEO Uchida is also under pressure from Nissan’s board and Renault, another alliance partner.
A day after the announcement of the failed negotiations between Honda and Nissan, CEO Makoto Uchida revealed the financial situation, with operating profit for 2024 falling from 150 billion yen ($1.2 billion) to 120 billion yen ($969 million), while net losses are expected to reach 80 billion yen ($646 million).
Previously, in November 2024, Nissan announced a plan to cut 9,000 jobs, streamline production, and close several plants, including a facility in Thailand, aiming to save 400 billion yen ($3.2 billion) by the end of the 2026 fiscal year.
Despite the pressure, Mr. Uchida declared that he would not step down as CEO until he turns Nissan around. Nissan is reportedly considering new collaborative relationships with foreign businesses, and Taiwan’s Foxconn has expressed interest in working with the Japanese carmaker.
TH (Tuoitrethudo)
Selling Factory to Russia for 1 Ruble, Renault Faces $1.3 Billion Bill to Restart Operations
The French automotive giant, Renault, faces a hefty price tag to reclaim its Russian factories and resume operations within the country. With a bill of up to $1.3 billion, Renault’s potential payout to the Russian government underscores the challenges faced by companies seeking to untangle themselves from the Russian market in the wake of the Ukraine conflict. This substantial sum highlights the complexities and financial repercussions of such strategic business decisions.
The Electric Revolution: Honda’s Triple Threat to Electrify Southeast Asia
Honda has unveiled an exciting roadmap for its electric vehicle journey in Southeast Asia. The automotive giant has announced plans to introduce three electric vehicle models to the region by 2027, marking a significant step forward in its electrification strategy. This bold move showcases Honda’s commitment to bringing its innovative and environmentally conscious vehicles to the diverse and vibrant markets of Southeast Asia.
Affordable Honda CGX150 Manual Motorcycle Set to Hit the Vietnamese Market
Recently, private business entities in Ho Chi Minh City have begun offering brand new Honda CGX150 motorcycles for sale. This batch of vehicles is expected to arrive at the port and go through customs procedures in March.
Profits Pressure: Nissan Needs Growth to ‘Keep Up’ with Honda
“Nissan’s future hangs in the balance. Without a well-thought-out strategy to boost sales and profit margins, the merger could very well fall apart, leaving the company vulnerable.”
The Chinese Automakers Dongfeng and Changan in Merger Talks
Recently, several subsidiaries of Dongfeng Group and China South Industries Group Corporation (CSGC) – the parent company of Changan Motors – have announced discussions regarding restructuring with other state-owned enterprises (SOEs).
