Carlos Ghosn, former CEO of Nissan, questioned the success of a possible merger between it and Honda, saying that Nissan’s plans “make no sense.”
Both car manufacturers are struggling to survive in light of the rapid change in the sector.
Duality
“From an industry perspective, there is duplication in everything” between the two companies, Ghosn said in a press conference today, adding that integration is necessary in the merger, “but there is no integration between Honda and Nissan.”
“If this merger happens… I personally do not think it will be successful,” he added via the Internet from Lebanon, where he currently resides.
Ghosn fled Japan in December 2019 before being tried on charges of not disclosing his full income, breach of trust, and embezzling company funds.
deal
The two companies signed a basic agreement for merger talks today, according to a joint media briefing in Tokyo, and Honda said it would buy back up to 1.1 trillion yen ($7 billion) of its own shares, Bloomberg reported.
According to the agreement, a holding company will be established for the new entity, which will be listed on the stock exchange by August 2026, and Honda will have the right to nominate the directors of the new company.
Mitsubishi Motors, of which Nissan owns 24.5%, has also signed the memorandum of understanding and will be part of the group.
Such an alliance would lead to the emergence of the third largest automaker in the world, making the trio a competitor to Toyota inside Japan and to Chinese automakers such as BYD and Geely Automobile Holding Co., Ltd. abroad.
