On February 13, Honda (HMC) CEO Toshihiro Mibe announced that the automakers' merger discussions with fellow Japanese rival Nissan (NSANY) fell apart just two months after they began.
In a joint statement released the same day, Honda acknowledged that it proposed to divert from its original intention of forming a joint holding company to one where "Honda would be the parent company and Nissan the subsidiary through a share exchange."
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Before they announced the merger, Nissan was on the verge of losing everything. Just the month before, Nissan execs told the Financial Times that the automaker exists on borrowed time, noting that it has "12 to 14 months" to survive if circumstances do not improve.
However, Nissan may be making some drastic moves as it scrambles to survive in its current environment, moves that may include a major C-suite shakeup.
Nissan CEO’s days may be numbered
According to a February 27 report from Bloomberg, sources close to the automaker allege that Nissan’s higher-ups are looking for CEO Makoto Uchida’s replacement, who previously noted that he will leave at the end of his contract in 2026.
In previous public statements, Uchida said he would give up the helm prematurely if asked to, but he also noted that his goal was to help steer Nissan in the right direction before leaving.
However, despite implementing scarring reforms that aggressively cut costs, one close Nissan confidant told Automotive News that the board was frustrated with its timing and supposed effectiveness, leading it to look at possible successors.
Those who spoke to Bloomberg noted that the Yokohama-based automaker’s directors want to thin out its management. They also noted that Nissan may supposedly announce its leadership changes on March 12.
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An American [possibly] at Nissan’s helm?
Citing sources close to Nissan, Japanese business publication Diamond Weekly named two potential candidates who could succeed Uchida at the helm of Nissan.
The publication has named current Nissan CFO Jeremie Papin as possibly guiding Nissan as an interim CEO while they search for a permanent successor. They note that Papin, the former chairman of Nissan Americas, was more receptive and open to Honda’s proposal to make Nissan a subsidiary instead of merging.
Notoriously, Honda’s proposal was seen as a bridge too far for Nissan and was cited as the reason for the conclusion of the merger talks that started in December.
In remarks before its earnings presentation on February 13, Uchida said that Nissan's board of directors recognized the aggressive nature of the move, which could diminish Nissan's decision-making abilities.
“We were not confident that our autonomy would be preserved or that Nissan’s potential would truly be maximized,” Uchida said. “I had doubts whether it would be successful.
Diamond also reported that Guillaume Cartier, who was named as Nissan’s chief performance officer late last year, is also seen as a candidate.
Related: Nissan has one major condition to salvage Honda merger
Honda is willing to talk without Uchida
The new developments follow a recent report alleging that potential merger partner Honda was willing to resume merger negotiations if Nissan CEO Makoto Uchida resigned from his position.
According to a source who spoke with the Financial Times, Honda is willing to revive merger negotiations with a Nissan CEO who is more effective at managing internal opposition.
Nissan still faces financial pressure and is looking for help in the form of investment from anyone and everyone they can.
The Tesla factory IS the product.
— Elon Musk (@elonmusk) February 21, 2025
The Cybercab production line is like nothing else in the automotive industry.
On February 21, the Financial Times reported that former Tesla board member Hiro Mizuno, ex-Japanese prime minister Yoshihide Suga, and his former aide Hiroto Izumi were to lead a charge to approach Tesla about making a significant investment in Nissan.
According to FT, Nissan board members were aware of the idea, and also noted that it was drawn up with the idea of Tesla acquiring some of Nissan’s U.S. plants to boost its domestic production. However, in a post on X, Tesla CEO Elon Musk shot down the FT's reporting, citing that the "The Tesla factory IS the product."
The Nissan Motor Company trades on OTC markets in the United States as NSANY and on the Tokyo Stock Exchange under the ticker number 7201.
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