The much-publicized partnership/merger waltz between Nissan and Honda is taking on airs of a full-blown danceathon. A first round of discussions between the Japanese led to a stalemate between the two parties, as Nissan refused to accept the terms put on the table by Honda. A deal looked dead in the water.
We then learned that Honda was actually ready to return to the negotiation table – on the condition that Nissan CEO Makoto Uchida step aside.
New media reports indicate that might be imminent. Nikkei in Japan and the Nikkei-owned Financial Times in the UK reported that Uchida is expected to resign this week. His departure could revive merger discussions with Honda.
Sources at Nissan told Nikkei that significant personnel changes, including in senior management, were coming soon. Uchida's inability to conclude a merger agreement with Honda apparently played a key role leading to his departure.
To replace him, Chief Financial Officer Jérémie Papin, Planning Director Ivan Espinos, and Performance Director Guillaume Cartier are believed to be in the running. It’s not yet known whether the next CEO will be appointed on an interim or permanent basis.
With a new CEO, Nissan could be more open to reconsidering Honda's conditions, the main one of which is that Nissan become essentially a subsidiary. A source within Nissan said that while the creation of a wholly owned subsidiary is not guaranteed, “discussions will probably go in the direction of accepting Honda's investment terms.” In that scenario, Nissan will cede some of its control over its affairs to Honda.
None of this has been confirmed officially.
It’s worth remembering that after the first round of talks with Honda failed, Nissan explored other potential partners, including Taiwanese electronics giant Foxconn. It’s clear that in some way, the struggling automaker needs to find assistance. Last fall, it was reported that the company’s very future could be compromised if it didn’t find help within 12 to 14 months.