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Honda is ready to continue the conversation about the takeover to create a fourth car manufacturer in the world if Nissan’s executive director Makoto Uchida deviates, according to people who know about discussions.
The 58-year-old was one of the strongest advocates within Nissan for an agreement with Honda. However, the relations between Uchida and his colleague Toshihiro Mibe worsened as Honda became frustrated by the speed of Nissan’s restructuring and the depth of his financial trouble.
Talks about the merger were broken after Honda asked for Nissan to become a branch completely owned instead of establishing a holding company, with two companies on the “equal basis”. Honda would be ready to revive the negotiations under the new boss that can better manage the internal opposition, one person states.
Uchida indicated her desire to stay until 2026, but faces the pressure to deviate in the next few months from the members of the Committee and partner Renault after a Megadeal negotiation of $ 58 billion. The Nissan Board of Directors also began informal discussions about the time of his exit, said the person familiar with these conversations.
Honda continues to attract Nissan’s capital ties with smaller rival Mitsubishi Motors because of his hybrid technology and a strong trace in Southeast Asia.
“I regret it ended like this,” Mibe told reporters when they spoiled talk about merging. However, according to people who are familiar with Miba’s thinking, one provision for a renewed offer is to get Uchida to step down.
“If discussions about business integrations are re -emerging, we will not completely exclude the possibility of continuing discussions,” Honda said.
The sudden collapse of the Honda Agreement was abandoned by Nissan, who struggles with a fall in debt sales and repayment, trying to find an alternative partner who will ensure his survival.
Foxconn has been circulating for months, confirming last week with his interest in procurement of Nissan shares as a means of securing a contract for electric cars production. Jun Seki, a former colleague who has previously run against Uchida to become Nissan’s executive director, is now the chief director of the Foxconn’s EV Division and led an overture to Renault to buy his shares of Nissan.
However, as Nissan becomes more vulnerable and Japanese establishment seeks to refuse Foxconna, which is considered too close to China, more radical proposals are floated.
Global groups of private capital – including KKR, owned by Marelli, a key Nissan supplier – and US technological companies were asked to consider investing in the company, according to three people with knowledge of discussions.
Some advisers were trying to put together a consortium to share costs, and the risks involved in the purchase of a company that needed deep restructuring, they added people. One proposal examines the involvement of American car manufacturers, who want to provide more domestic factories to move with the tariff regime of President Donald Trump.
“Any customer can have two approaches: you go in immediately or wait until it gets into problems and the price does not fall. Potential customers do not need to rush to buy a company. Nissan is in a hurry,” said Macquarie analyst James Hong.
Nissan’s partner Renault also considers his capabilities because he reactivates talks with Foxconn, who approached the group at the end of last year about the purchase of some of his shares in Nissan.
The French car manufacturer is dedicated to his alliance with Nissan, but wants to sell a large piece of 36 percent, which he still owns in the Japanese group. Renault refused to comment.
Nissan faces the upcoming amounts of cash flow if the sale still falls. The company has 1,2tn ($ 6.6 billion) Net cash, but in the first nine months of the financial year, the ¥ 506 billion was burned.
Insiders say Nissan must ensure that he has sufficient money from cash, not only for funding for restructuring costs, but also to avoid the “vicious cycle” from interest rates to loans that are increased due to potential loan reduction. His bonds rated by garbage status by S&P and are admitted to the status of an investment class from other evaluation agencies.
Mizuho Financial Group, Nissan’s Main Bank and one of the key actors who advocated joining Honda, tries to find ways to inject liquidity into the group.
Motoo Nagai, former Mizuho CEO, and Yasushi Kimura, chairman of the Committee, were the only members who expressed support for Honda’s regional proposal.
The Bank now explores funding solutions that include groups of private capital, according to people who are familiar with this issue. Mizuho refused to comment.
Uchida said on Thursday that he wanted to step down after Nissan returned to the recovery path, but that he would go sooner if he asked for it.
“My responsibility is truly significant..[but] Going without improvement is irresponsible, “he said.” It is not my intention to stick to this position. ”
