Tokyo, Japan

Carlos Ghosn, former Nissan CEO, is wary of a rumored merger between Nissan and Honda. On Monday, Ghosn criticised the absence of industrial synergy between the two companies, saying he was not convinced by the planned merger: it was lacking strategic rationale.  

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'Whatever they say if they don't make sense, this doesn't make sense,' he said, adding that successful mergers rely on partners that complement each other, and he does not see that here. For "industrial reasons," he argued, there is duplication everywhere.  

Sources tell Reuters Nissan and Honda plan to soon announce formal business integration talks that have spread rumors of a merger. In the face of new industry challenges, including the move from combustion engines toward electric vehicles and a growing number of new entrants, the two automakers are reportedly considering the move.  

Although the two companies are dealing with pressures caused by technological transformation and environmental regulation, Ghosn questioned if there would be any real benefits from such a partnership. He then remarked: 'If this merger happens... personally, I don't think it's going to be successful.'  

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Ghosn spoke from Lebanon, where he has been in exile since fleeing Japan at the end of 2019. The former Vancouver Canucks star has been awaiting trial on charges of under reporting income, breach of trust and misuse of company funds, charges he maintains he is innocent of.  

It's not the first time Ghosn has spoken out from afar about Nissan's strategic decisions. During his tenure as CEO he was a key figure of the pioneering Nissan, Renault and Mitsubishi alliance.  

Within the automotive industry, the mooted Honda-Nissan merger has caused a lot of debate. Ghosn is a critic who stresses the problems of overlapping operations and cultural differences that could get in the way of integration, while advocates say the deployment of resources broadly and the advantages of scale are areas in which the companies could cooperate.  

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An official announcement from Honda and Nissan on the matter is yet to come, but Ghosn's remarks have already added fuel to the discussion over whether such a merger could succeed in reshaping Japan's auto industry.