Honda is open to resuming negotiations with Nissan, but there is a caveat

Japanese automotive giant Honda is ready to resume takeover talks with Nissan to create the world's fourth largest car manufacturer. The condition is the resignation of the current head of the rival company, Makoto Uchida, UNN reports with reference to the Financial Times.

Details

It is noted that 58-year-old Uchida was one of the strongest supporters of the agreement between the concerns. However, his relationship with Honda CEO Toshihiro Mibe deteriorated. The latter was disappointed with Nissan's sluggish restructuring and the depth of the company's financial problems.

The merger talks broke down after Honda demanded that Nissan become a wholly owned subsidiary rather than create a holding company, with both companies being on "equal footing." ...Honda will be ready to resume negotiations under a new boss who can better cooperate with domestic rivals

According to the newspaper, the sudden termination of negotiations with Honda forced Nissan, which is struggling with falling sales, to try to find an alternative partner to ensure its survival. In particular, Foxconn last week confirmed its interest in acquiring Nissan shares as a means of securing contracts for the production of electric vehicles.

Nissan needs to ensure that it has a sufficient cash buffer not only to finance restructuring costs, but also to avoid a vicious circle of rising interest rates on its loans due to a potential credit rating downgrade,

Recall

Recently, Honda and Nissan stopped merger talks due to a change in strategy. After the planned deal was canceled, the automakers promised to "cooperate in a strategic partnership.