- Nissan’s CEO has admitted it will be difficult for the company to survive without outside help.
- The automaker’s nomination committee could meet on March 6 to discuss next steps.
- Makoto Uchida has warned shareholders to expect a $536 million net loss.
While a merger between Nissan and Honda is off the table, a new report suggests that Nissan is reportedly considering accepting some investment from its fellow Japanese carmaker. This could see it embark on some kind of collaboration with Honda, as well as Mitsubishi and Hon Hai Precision Industry, better known as Foxconn.
A report out of Japan claims that Nissan still wants to work with Honda after initial negotiations broke down in February. The brand is in a precarious financial position and appears willing to do whatever it takes to survive. This could include the sacking of current chief executive Makoto Uchida, who has led the brand since 2019.
Read: Credit Firms Slash Nissan’s Rating To Junk, One After Another
It’s understood that if Nissan decides to take on investment from Honda, Uchida could be pushed out, Nikkei Business reports. The executive has previously said he will not stand in the way if Nissan’s nomination committee, the board of directors, and shareholders decide that he should be sent packing.
According to a Nissan insider, the nomination committee will meet on March 6 to discuss the next steps. If Uchida does get pushed out, current chief financial officer Jeremy Papin could take over on an interim basis. He could be charged with leading the new negotiations with Honda.
Bloomberg understands that Uchida has been eager to steady Nissan’s business before leaving his post. However, he recently told shareholders to expect a $536 million net loss for the fiscal year ending in March, despite having previously estimated a $2.5 billion net profit during a forecast in May 2024.
Foxconn has been a major player in talks about Nissan’s future in recent months. It’s understood that the Taiwanese giant’s potential interest in gobbling up the automaker last year was one of the reasons why Japanese authorities reportedly pressured Honda into teaming up with its rival, eager to ensure Nissan remained Japanese.
After negotiations between Nissan and Honda to develop a joint holding company fell through, Uchida said it would be difficult for the former to survive without partners.
“Under the current situation, it is difficult to keep up with competition just by Nissan itself, so we had a serious discussion about the proposal by Honda,” he said. “We were unable to have confidence in how much Nissan’s independence will be ensured and whether our potential will be fully brought out if Nissan becomes Honda’s wholly owned subsidiary.
