According to a new report, Honda is not satisfied with the proposed restructuring of Nissan
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by Brad Anderson
February 5, 2025 at 07:02
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- Although the agreement can work for Honda, it seems unlikely that Nissan is on board.
- Nissan wants to reduce 9,000 jobs and reduce production capacity by 20%.
- Nissan could be particularly affected by prices adopted against Canada and Mexico.
There is another torsion in history for the fusion proposed between Japanese automotive japan Nissan and Honda mastodons. Shortly after, it was revealed that Nissan may have to triple his profits for the merger to obtain the green light, it was revealed that Honda proposed to buy actions from Nissan and transform the brand into difficulty one of its subsidiaries.
Anonymous sources with information on the proposal understand that Honda is not convinced by Nissan’s recovery plans, and thinks that more things must be done to bring it back in blue. To do this, it could potentially buy Nissan actions and transform it into a subsidiary. However, this plan will probably be confronted with a significant opposition from Nissan.
Read: Honda and Nissan Delay Merger Update until mid-February
According to analysts, Nissan fears that such a decision will undermine its autonomy in the future. In addition, Nissan would be opposed to Honda considerably increasing its involvement in the brand’s direction, Japanese Reports.
Nissan has offered several ways to restructure. For example, it plans to reduce 9,000 jobs worldwide and also intends to reduce global production capacity by 20%. He also seeks to introduce early retirement programs in three of his American factories. Kyodo News understands that Honda demands that Nissan will make greater changes.
The finalization of the merger is difficult. The ex-Nissan and the boss of Renault, Carlos Ghosn, suggested that Honda was pushed into the merger by the Japanese ministry of the economy, trade and industry, because they do not want one of Their most famous companies falls into possession of foreign owners. Honda has also set strict financial objectives in Nissan that he must strike to guarantee that the merger continues.
Carscoops understands that Nissan will have to generate around 400 billion yen ($ 2.6 billion) during the year 2026. It will not be easy. Its operating profit recently increased from 3,367 billion yen ($ 2.3 billion) to 32.9 billion meshes ($ 225 million). Nissan’s net profit for the first half of the 2024 fiscal year also depressed 93.5% to 19.2 billion yen ($ 131 million).
Under the threat of prices
Nissan also has rates to fear. While the Trump administration recently interrupted 25% prices for Mexico and Canada, Nissan could be hard if these prices continue. Important models such as Infiniti QX50, QX55, Sentra, Kicks and Versa are all built by Nissan in Mexico and imported into the United States. Given the precarious financial situation in which he already finds himself, these prices could be harmful to him.
“The problem is Nissan, who barely earns money in the automotive sector,” Macquarie, responsible for mobility mobility, told Reuters. “The longer the price remains, I think it can be a big threat to Nissan. And finally, if the merger really passes, then it can also be a burden for Honda. »»
