Nissan Motor is looking for a new partner at a time when it is preparing to end the negotiations with Honda Motor to form a holding company, according to Bloomberg Agency from informed sources unnamed.
The sources described by Bloomberg said that the new ideal ally of Nissan will be from the United States -based technology sector, and despite its global sales slowing, North America remains the most important market for Nissan, and that the broader shift towards electrification and automation pushes all auto companies to search for alliances With high technical industries.
Nissan shares jumped by 7.3% at the end of Thursday’s trading in the Japanese market to 415.1 yen ($ 2.72), and Honda shares fell 4% to 1440 yen ($ 9.45).
A Nissan spokesman confirmed that any details of the talks with Honda will be announced as planned in mid -February.
Great risk
According to Bloomberg, withdrawing from partnership with Honda is a great risk to Nissan, which was forced by the assortment of its old products to provide significant discounts, which reduced its net profits significantly.
Nissan, which will announce the profits of the third quarter (the fiscal year in Japan, starts on April 1 and ends on March 31), last week, the net income fell 94% in the first half, and said that it will need to be lay off 9 thousand workers and reduced five Its manufacturing ability.
This fragile financial situation is unlikely to attract many potential partners. If Nissan does not find a partner to help her return stronger after partial dismantling of her 25 -year complex strategic partnership with Renault, you may need to save as she did with the French auto industry.
Nissan and Honda confirmed yesterday, Wednesday, that they are still discussing various options, including the possibility of ending the merger talks, and the sources said that Honda put forward the idea of acquiring Nissan and making it a subsidiary fully owned, which was met with a strong opposition within the smaller Japanese auto company, and they added that the investment level was also Point of disagreement.
Honda stipulated the restructuring of Nissan’s operations for any partnership, but regardless of reducing some jobs and reducing production, Nissan did not do much, as she did not plan to close any factories, for example, which probably disturbed Honda because it was a comprehensive change.
Meanwhile, ending exclusive discussions with Honda would allow either party to withdraw without the need to pay exorbitant cancellation fees of 100 billion yen ($ 657 million), according to the memorandum of understanding between the two companies on December 23.
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A major restructuring
Bloomberg quoted the source as saying that the Nissan Board of Directors is pressuring CEO Makoto Oshida and other senior managers to develop a more comprehensive restructuring plan in parallel with discussions with any possible new partner, and the goal is to reach a much deeper reform in time on February 13th. .
A source said that this is the time when the council will meet to give the official character to its decision, and Honda will announce the profits of the third quarter on that day as well.
Nissan has been struggling to restore a foothold since the arrest of its former president, Carlos Ghosn, on charges of not reporting the compensation he received, which resulted in the annulment of the Nissan Alliance with French Renault.
The scope of the financial crisis faced by Nissan became clear to the broader audience last November when the auto industry, as well, reduced its annual profit expectations by 70%.
