The Honda-Nissan Merger Might Happen, On One Condition

After shocking the auto industry and world by announcing a merger, the Honda-Nissan alliance blew up like a dying star. Since then it’s been drama, like watching a couple break up and get back together so many times you can’t keep it straight. But a new development might cement the deal, if Nissan is willing to play ball on one condition Honda wants.

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That condition is simple: Honda wants Nissan CEO Makoto Uchida to step down from his post and retire. That’s what anonymous sources in Honda claim, says the Financial Times in an explosive report.

It’s an ironic twist considering Uchida has been a tireless advocate for merging with Honda, arguing the move is necessary for the future of the company. But Honda isn’t happy with how Nissan has handled the nuts and bolts of preparation for the merger, so it seems Honda CEO Toshihiro Mibe is putting the blame on Uchida.

In a way it makes sense. The CEO of a company should ultimately be held accountable for failures. But some will think Honda is being a little harsh or petty.

During the back and forth between the two automakers, Nissan bristled at Honda’s attempt to make it a subsidiary instead of a partner. After so long living under the thumb of Renault, the Japanese company doesn’t want to be in a similar position, just with a different master.

Nissan was looking at other options after talks with Honda broke down. The automaker reportedly was preparing to approach Tesla about investing in it. But Elon Musk said such a proposal wouldn’t be entertained.

Thus, Nissan has continued talks with Honda and reportedly is looking to replace Uchida. With its back against the wall, the company doesn’t have many choices at this point. While the merger is still in limbo, it looks like something will have to give or Nissan faces a very painful death, or possibly a hostile takeover as the ship goes down.

Image via Honda, Nissan