The merger process between Honda and Nissan is at a standstill

The merger process between Honda and Nissan is the big series of the year in the automotive world and the star topic in the economic and business news of Japan. After both brands signed and announced the start of negotiations for the merger between Honda and Nissan with a schedule and process indicators agreed between both parties and with the approval of the Japanese government - which considers this operation strategic for its own economy - the process has ended up cooling down due to Nissan's current situation and the current will of Nissan.

Nissan is currently facing a number of urgent issues that it must resolve in order to ensure its viability, after having lost 94% of its profits in just one year. The plan proposed by Toshihiro Mibe, Honda's CEO, involves an absorption process that would involve the dismissal of thousands of Nissan workers, a commercial strategy positioning Nissan as a subsidiary of Honda and a series of technological and mechanical adjustments to adapt to the platforms and systems. This plan was received as an insult by Makoto Uchida, president of Nissan, who is in no way willing to accept what he considers a submission to Honda's interests.

In recent years, Uchida has been a great supporter of Nissan's alliance with Renault, and in fact has placed the last hopes of the brand's viability in the new Leaf and Micra, two urban electric models that are due to be launched in the first half of 2025 and which have been developed on the new R5 modular platforms.

Uchida's dismissal as a mess

The merger negotiations remain at a standstill, although Honda is willing to negotiate the terms of the merger as long as it does not have to negotiate with Nissan's current president, Makoto Uchida, whom Honda executives (and especially its CEO Toshihiro Mibe) do not want as an interlocutor in the process. This situation leaves Uchida on the verge of being fired, as Nissan shareholders and its executive board have reportedly begun discussions for his dismissal, as reported by the company. Reuters agency reportsNissan's poor business results, coupled with Honda's demands and pressure from the Japanese government, appear to be dooming the departure of its current CEO in the coming weeks.