Nissan seems ready to draw from conversations about a planned merger with Honda, with a value of £ 46 billion, in the midst of increasing tensions and a desire to find a better -suited ally for his push in electric vehicles (EVs).
The two Japanese car manufacturers announced in December that in addition to Mitsubishi, they explored a tires to form the world’s third largest automotive group through an annual sale, but the negotiations were stuck.
According to a person with knowledge of Nissan’s strategy, the company is now striving for alternative partners. This search can extend beyond traditional automotive groups, where Taiwan’s Hon Hai Precision – better known as Foxconn – considered a potential candidate. Reportedly, some Nissan board members Foxconn look favorably; Sources, however, suggest that an American tech partner can ultimately be preferred.
A Honda -Nissan -Fusion was originally seen as a reaction to the intensifying competition in EV technology, in particular of Chinese manufacturers. Yet several obstacles, including the observed imbalance between the second and third largest car manufacturers in Japan, seem insurmountable. Honda stays five times larger due to market value, while Nissan fights against unrest, decreasing profit and the inheritance of offering substantial discounts in his most important North American market.
Analysts say that Nissan’s poor performance undermines his negotiating power. Todd Duvick, head of Autos Research at Rating Agency Creditsights, notes that if Honda would acquire instead of combining, leading cost -saving job losses, especially among the senior ranks of Nissan. Such a takeover would also limit the scope for the existing shareholders of Nissan to take advantage of any turnaround.
Another complicating factor is the share of Renault, a hangover of the previously triumphant Renault – Nissan – Mitsubishi Alliance led by Carlos Ghosn before his dramatic arrest and subsequent flight to Lebanon. The long -term leadership struggle of Nissan has exacerbated financial misery, allowing Chief Executive Makoto Uchida to plan 9,000 global job reductions as part of a restructuring drive.
Both Honda and Nissan will release their respective income on 13 February. Honda acknowledges that “different discussions” are underway and expects that he will confirm or clarify plans in mid -February. Nissan has so far refused to comment.