Honda Open To Reviving Nissan Merger Talks If CEO Uchida Steps Down, Creating Fourth-Largest Global Automaker

Honda Motor Co. HMC is willing to resume merger negotiations with Nissan Motor Co. NSANY if CEO Makoto Uchida steps down.

What Happened: The potential combination would create the world’s fourth-largest automaker, though previous talks collapsed over Honda’s demand for full ownership rather than an equal partnership, reported Financial Time, citing sources.

Uchida, who faces pressure to depart after the failed $58 billion deal, has expressed willingness to leave before his planned 2026 exit if asked, though he prefers to stay until Nissan’s recovery.

The company faces mounting challenges, having burned through ¥506 billion ($6.6 billion) in the first nine months of its fiscal year despite holding ¥1.2 trillion ($15.65 billion) in net cash.

Why It Matters: While Foxconn has expressed interest in acquiring Nissan shares, other potential investors including KKR & Co. and U.S. automakers are evaluating opportunities. Renault RNLSY, which owns 36% of Nissan, is exploring options to sell its stake at a premium.

Mizuho Financial Group, Nissan’s main bank, is actively seeking funding solutions involving private equity groups to support the automaker’s liquidity needs.

The top three automakers by global sales are Toyota Motor Corp. TM, Volkswagen AG VWAGY, and Stellantis NV STLA, followed by Ford Motor Co. F and General Motors Co. GM, according to data from Statista.

Price Action: Honda Motor’s stock is trading at 1,427 Japanese Yen ($9.41) on the Tokyo Exchange, up 0.25% as of 10:34 AM local time on Tuesday, after initially dipping to 1,410 Japanese Yen ($9.29). Meanwhile, Nissan Motor’s stock is up 5.28%, trading at 446 Japanese Yen ($2.94).

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