Honda-Nissan Merger Talks Could Resume, Under One Condition

Last week, the long-running talks between Honda and Nissan over a potential merger were called off. Although the two had originally proposed setting up a joint holding company, a late-stage change in strategy from Honda – which wanted a wholesale takeover of Nissan – proved to be the final roadblock.

For now at least, as a report has claimed there is one condition in which talks could resume.

Nissan Ariya Nismo

According to the Financial Times, Honda insiders have suggested that the manufacturer would be willing to resume talks should Nissan’s CEO, Makoto Uchida, step down from his role.

Previously, Uchida said he intended to stay in the role – one he’s held since 2019 – until 2026. However, the FT reports he is facing mounting internal pressure from board members as well as Renault, which holds a 36 per cent stake in Nissan, to leave the role within the coming months. 

Honda Civic Type R

FT further claims a source familiar with the talks has said informal discussions over Uchida’s exit have begun. It has been reported that frustrations with Uchida’s internal restructuring of Nissan as well as its significant financial troubles are major factors.

The two companies signed a memorandum of understanding on 23 December last year, agreeing to look into merging operations, strengthening an agreement made earlier in 2024 to collaborate on electric cars. However, those fell apart, with official statements released on 13 February saying talks had ended.

Honda and Nissan executives

Nissan elaborated, stating: “As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the [memorandum of understanding].”

Honda’s statement didn’t offer anything additional, although the two have stated they intend to continue collaborating as part of a ‘strategic partnership aimed at the era of intelligence and electrified vehicles.’ How the failed talks will affect those plans long-term remains to be seen.