Honda Open to Resuming Talks with Nissan — If CEO Leaves

Two weeks after halting talks that would have resulted in some form of partnership between Honda Motor and its faltering rival, Nissan Motor, Honda officials say they’re willing to resume discussions. There is one caveat: current Nissan CEO Makoto Uchida needs to step down.

Nissan has yet to respond, according to the report in the Financial Times. Honda officials told Reuters it was not something they had “announced.” The suggestion that Honda is amenable to engaging in further discussions isn’t entirely surprising.

Uchida previously expressed a desire to remain in place until 2026. However, the rumor about Honda’s requirement to restart talks comes as Nissan’s alliance partner, France’s Renault, as well as some Nissan board members are reportedly pressuring him to leave earlier.

Honda CEO Toshihiro Mibe said last week the company was not planning to launch a hostile takeover bid for Nissan. Since the split, Taiwan-based Foxconn, which is best known at the producer of iPhones, engaged in talks with Nissan about a potential tie-up — but not a takeover.

Big problems

Nissan’s well-documented struggles have been going on since its charismatic CEO Carlos Ghosn was shown the door amid accusations of inappropriate and illegal activities during his tenure at the helm of the Japanese automaker.

Uchida took over for Ghosn’s replacement, Hiroto Saikawa, after he became embroiled in his own set of controversial issues. Uchida looked to put the company back on the correct path; however, sales continued to wane as costs rose.

As Nissan teetered on the edge of bankruptcy, Honda officials initiated talks last December to see if a partnership could be formed between the two companies. After a press conferences marked by happy handshakes and optimistic projections, the two sides got down to business.

Initially, it the negotiations appeared to be going well, until it became clear that Honda expected Nissan to be a subsidiary while Nissan expected to be equal partners. The talks ended.

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A new hope

Foxconn has been looking to get into the international automotive market for several years now. It apparently took a run at gaining an interest in Nissan last year, approaching Renault about buying its stake in the automaker.

The Taiwanese manufacturer also reached a deal with now-defunct EV maker Lordstown Motors as well as Apple, offering to produce the long-rumored but never-materialized Apple car. The deal with Lordstown gave it control of the former General Motors plant in Lordstown, Ohio.

Foxconn aimed to help the EV maker escape bankruptcy. Foxconn paid $230 million to take over the plant and promised another $170 million in new investment. However, it was too little, too late. Once Lordstown’s shares were delisted, Foxconn backtracked on the additional cash. However, Lordstown Motors emerged from bankruptcy in fall 2023 with new owners and a new name: Nu Ride Inc., and they’ve filed suit against Foxconn to recoup the promised money.

Trump card

Foxconn’s willing to take a run at Nissan for several reasons, but the most compelling one is Jun Seki, the company’s chief strategy officer for EVs, who was the executive sent to meet with Nissan last month.

He’s important because before accepting his current role in 2023, he was Nissan’s chief operating officer. Seki was part of current Nissan CEO Uchida’s original management team.

However, Seki remained for just a few weeks before taking a CEO post at a different company, leaving some existing Nissan execs angry with him — even now. However, Foxconn’s flexibility might make it the more appealing partner. It’s agreed to buy a small stake in Nissan, giving Japan’s second-largest automaker a cash infusion it could certainly use right now.