The Honda-Nissan Merger Might Not Be Dead After All

Honda recently said it would be open to resuming talks with Nissan if its CEO, Makoto Uchida, steps down. The deal fell apart as Nissan felt it would be relegated to a much smaller subsidiary role within Honda, and Honda execs felt Nissan wasn’t as worried about its financial situation as it should have been.

The merger could be enough for Nissan insiders to push Uchida out, but the automaker’s alliance partner, Renault, also wants him gone, so his days could be numbered. Uchida has said he wants to stay until 2026, but many feel that his actions have failed to make a meaningful improvement in Nissan’s business operations, and some have said that he’s responsible for botching the Honda negotiations.

A merger would benefit Mitsubishi, which is tied up with Nissan in the alliance with Renault, and it could be the shot in the arm both automakers need to effectively compete. Mitsubishi would not have to lean so heavily on Nissan after the merger, but analysts believe that its fate is tied to Nissan’s ability to turn things around.

[Images: Honda, Nissan]

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