Nissan CEO Makoto Uchida is widely expected to step down this week, thus restarting talks with Honda to merge under a new holding company, according to Nikkei news service.
Nissan’s board was initially behind Uchida when a deal was struck last December between Nissan and Honda to be jointly owned by a new Japanese holding company. The deal, which has been encouraged by the Japanese government, was meant to stabilize Nissan’s finances.
But Uchida, according to multiple news reports as well as WardsAuto sources familiar with the merger discussions who asked not to be named, has balked at taking a backseat to Honda’s management in determining the future of shared technology and investments meant to serve both automakers.
In the past few weeks, though, WardsAuto sources confirm that the board sees Honda as the best partner and option to stabilize Nissan, which is undergoing a substantial restructuring and realignment, cutting 9,000 jobs globally and reducing capacity.
Foxconn, the world’s largest electronics manufacturer, has been making overtures to Nissan, but thus far the board has not supported the offer. Foxconn has also reportedly approached Renault to take over the French automaker’s 35% stake in Nissan as a foothold.
Between 2018 and 2024, Nissan Motor Co., under Uchida’s leadership, experienced a 42% cumulative total shareholder loss. This figure encompasses both stock price appreciation and dividends paid during this period. Honda shareholders saw a 47% increase in the same period.
Nissan’s global sales volume dropped by 2.3 million vehicles per year between 2018 and 2024 under Uchida, with a decline in market share from 6.6% to 4.5%, according to Nissan’s financial reports. Honda has had sales challenges too, reporting that global sales fell from 5.32 million vehicles in 2018 to 3.43 million vehicles in 2024. But it has been better at managing that decline, as evidenced by its shareholder returns.
Nikkei reports that significant personnel changes, including at the top level, are imminent. Uchida’s potential replacements include chief financial officer Jeremie Papin, chief planning officer Ivan Espinos and chief performance officer Guillaume Cartier. It remains unclear whether the next CEO will be an interim or permanent appointment.
