Honda Ready to Reconsider Takeover Bid if Nissan CEO Uchida Steps Down: Report

Honda is reportedly open to reviving takeover discussions with Nissan, contingent on the departure of CEO Makoto Uchida. The potential shift in stance signals Honda’s renewed interest in strengthening its position through consolidation, particularly if leadership changes at Nissan create a more favourable negotiating environment. While previous talks between the two Japanese automakers have stalled, industry analysts suggest Uchida’s exit could pave the way for renewed engagement. Honda’s willingness to reconsider a takeover bid underscores the evolving dynamics within Japan’s automotive sector, as companies seek strategic partnerships to navigate industry challenges such as electrification and global competition. If Nissan undergoes a leadership transition, Honda may seize the opportunity to push for a long-speculated merger or acquisition.

Honda-Nissan Merger Talks Take a New Turn

Merger negotiations between Honda, Japan’s second-largest automaker, and Nissan, the third-largest, fell apart last week. A failure to agree on key conditions led Honda to withdraw from discussions, further destabilising Nissan. The deal collapsed primarily because Honda pushed for full ownership of Nissan rather than proceeding with the originally proposed joint holding company, which would have ensured equal control. This unexpected shift from the December 23 agreement sparked strong resistance within Nissan, ultimately derailing the talks.

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According to a recent Financial Times report, however, Honda has made a surprising U-turn on its position but has attached a critical condition. The company is now open to resuming merger discussions, but only if Nissan replaces its leadership with someone better suited to handling internal pushback. Ironically, Nissan CEO Makoto Uchida was one of the strongest supporters of a deal with Honda. However, his relationship with Honda CEO Toshihiro Mibe has reportedly deteriorated, as Honda grew increasingly impatient with Nissan’s sluggish restructuring efforts and deepening financial struggles.

The report also indicates that while Uchida had originally planned to stay on as CEO until 2026, growing pressure may force him to leave much earlier. Nissan’s board, along with alliance partner Renault, is pushing for his resignation, pointing to his mismanagement of the collapsed USD 58 billion merger deal. Furthermore, Nissan’s leadership has reportedly started behind-the-scenes discussions on the timeline and strategy for his exit.

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At the same time, Nissan is looking to reduce expenses by cutting 9,000 jobs globally and decreasing production capacity by 20 per cent. Meanwhile, Renault, Nissan’s alliance partner, is reassessing its options and has reopened discussions with Foxconn, which had expressed interest late last year in acquiring a stake in Nissan. Although Renault remains committed to the partnership, it is exploring the possibility of selling a significant portion of its 36 per cent stake in Nissan at a premium. However, the French manufacturer has not officially confirmed the same.