Honda Motor expressed readiness to restart takeover exchanges with Nissan Motor on the sole requirement that Nissan CEO Makoto Uchida leaves his position according to reports by the Financial Times on Tuesday from a knowledgeable source. Planned Japanese car industry consolidation reached its peak when two major automakers intended to combine forces into a top four global automotive corporation valued at USD 60 billion. Talks between Nissan Motor and Honda Motor failed last week which created another challenge for Nissan since it faces declining earnings because of its lack of competitive hybrid models in the U.S. market while Chinese EV manufacturers increase their presence.  

Advertisment

The report confirmed that Nissan declined to answer questions about the recent storyline although Honda officials stated that they have not issued any such announcement.  

Also Watch | Nissan-Honda merger talks collapse

The Nissan boss faces increasing expectations to rescue Nissan's declining performance and recover from multiple internal obstacles that hindered company growth. Previous sources at Reuters explained how Nissan ended the merger talks because it did not accept Honda's conditions that would transform Nissan into a subsidiary. Sources indicate that Honda would begin merger talks again if Nissan leadership demonstrated enough ability to address internal resistance to an agreement.  

Advertisment

Honda CEO Toshihiro Mibe expressly declared that the company would not carry out hostile takeover operations against Nissan. As Nissan progresses with its business transformation the company continues to execute its turnaround plan through workforce reductions of 9,000 employees and manufacturing capacity cuts of 20%. The automaker announced last week it plans to release an update regarding the business strategy in one month.  

Also Read | Nissan ends merger talks with Honda over subsidiary proposal

The Financial Times reported that Uchida confronts mounting board pressure along with partner Renault (RENA.PA) to exit his position during the forthcoming months despite his initial commitment toward remaining until 2026. The board of Nissan is currently considering the appropriate timing for Uchida's departure from his position.  

Advertisment

As the fallout from the failed talks continues, the fate of Nissan’s leadership—and its potential future with Honda—remains uncertain.