Report: Honda’s wild Nissan ultimatum

The failed merger designed to save Nissan from collapse could be back on but only if the Japanese autogiant meets one huge Honda demand.

The on-again, off-again Honda and Nissan saga has taken a fresh twist, with the auto giants reportedly considering a reunion under one strict condition.

The Financial Times reports Honda will return to the negotiating table to save Nissan, but only if Nissan chief executive Makoto Uchida steps down.

MORE:Honda and Nissan scrap merger talks

Honda to re-enter Nissan talks if Japanese rival’s chief Uchida leaves https://t.co/6p77MW9xKv

— Financial Times (@FT) February 18, 2025

Citing unnamed sources within the auto industry, the business publication says “Honda would be prepared to revive negotiations under a new boss who can better manage internal opposition”, and that “Honda is willing to resume takeover talks to create the world’s fourth-biggest car producer if Nissan’s chief executive Makoto Uchida steps down”.

MORE: Why Nissan’s break-up is not heartbreaking

Honda – Nissan merger is now off

Having announced their intention to form a joint venture in December, Nissan and Honda elected to step away from talks in February.

Leaks from the negotiating table suggested Honda wanted Nissan to become its subsidiary, but the latter declined to be the junior partner in any joint venture.

Nissan’s Uchida told reporters “we could not accept this proposal as we were not sure how much our autonomy would be kept and if Nissan’s potential would be maximised”.

Honda chief executive Toshihiro Mibe said “that the both companies were not able to reach an agreement is very regrettable”.

MORE: Why Nissan’s break-up isn’t heartbreaking

Nissan made global headlines in December when insiders told reporters the company was doomed to fail without a takeover or significant investment.

The company already announced plans to cut thousands of jobs, slash production, and reduce costs in drastic measures intended to turn its finances around.

Nissan has openly canvassed the possibility of pulling out of countries where it is underperforming, issuing a statement that said “Nissan will carry out a review of its market presence and determine where to remain, outlining an operational strategy for the rest of the markets”. 

The brand’s local arm has promised that it is here to stay, attempting to reassure customers with a 10-year warranty that doubles consumer guarantees offered by the likes of Toyota, Hyundai or Ford.

Originally published as Report: Honda’s wild Nissan ultimatum