Instead of uniting on equal terms, Honda suggested that Nissan become her subsidiary, writes Kyodo with reference to insiders. The companies were going to publish the details of the merger into a single holding company at the end of January, but the deadline was shifted to mid -February. Nissan allegedly could not fulfill the Honda condition: the company’s experiencing crisis failed to convince the potential partner that it could make business successful.
Analysts expect that Honda’s proposal to turn Nissan into a “daughter” will meet “fierce resistance”. Nissan, which has recently bought part of Renault shares, will fight for autonomy, and therefore a merger transaction may break.
Before the merger, Honda demanded evidence of financial stability from Nissan: in 2026, about 400 billion yen ($ 2.6 billion) needs to earn money in the financial year. The forecast for 2024, which will end in March, is only 150 billion yen (0.95 billion dollars).
The ex-head of Nissan and Mitsubishi said that Honda wants to absorb them Mitsubishi wants to avoid merging with the Honda-Nissan Nissan alliance in a year in a year
To improve the indicators, Nissan announced the dismissal of nine thousand workers around the world and reducing production by 20 percent. The employees of three factories in the United States were offered to retire ahead of schedule.
However, sources say that Honda top managers were not enough and they are waiting for more effective measures to optimize business. In addition, Honda requires a complete breakup between Nissan and Renault.
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