FT reports that Honda is ready for revival takeover talks if Nissan CEO Uchida leaves.
(Reuters) – The Financial Times reported on Tuesday that Honda will resume talks with Nissan to form the world’s fourth largest automaker, providing Nissan CEO Makoto Uchida landing.
Japan’s second and third largest automakers started a $60 billion company after negotiations with Toyota Motor after the United States lacked mixed models and local Chinese competitors.
The conversations collapsed last week, putting Nissan into further uncertainty and highlighted pressure on traditional automakers, especially from emerging Chinese giants that undermined the industry.
Nissan declined to comment on Reuters regarding the FT report. Honda said the report was not announced.
Uchida is under pressure to turn Nissan around after years of faltering sales and management turmoil that cuts the company’s forces. Reuters reported in December that the following months are crucial to the future of Uchida and Nissan.
Sources previously told Reuters that negotiations to merge with Honda were revealed in more than a month, due to Nissan’s pride and insufficient alerts to its plight, and Honda’s move toward its smaller companion as a subsidiary proposal.
FT reported that Honda was willing to negotiate with Nissan bosses who could manage internal opposition more effectively. Honda CEO Toshihiro Mibe said last week that his company has no plans to launch a hostile acquisition of Nissan.
Nissan has been working on a turnaround plan that plans to reduce the 9,000-person workforce and global manufacturing capacity by 20%. It said Thursday it will provide updates to the plan within a month.
According to National Bank, Uchida said it intends to stay until 2026, but after negotiations with Honda, board members and French partner Renault face pressure to come down in the coming months.
The National Bureau reported that Nissan’s board of directors also began informal discussions on the timing of Uchida’s departure.
(Reported by Daniel Leussink in Tokyo and Rhea Rose Abraham and Urvi Dugar in Bangalore; Editors by Sherry Jacob-Phillips and Christopher Cushing)
