Why The Voice Of “only Toyota Can Save Nissan” Is Growing Louder And Louder

Is the "resignation of President Uchida" a condition for renegotiation?

The current situation with the integration of Honda and Nissan's operations seems to be moving in a number of different directions. There are reports that Honda intends to resume negotiations once Nissan President Makoto Uchida steps down. In addition, at the end of February, another media report said that Taiwan's Hon Hai Precision Industry Co., which is interested in acquiring Nissan, has proposed a partnership with Honda Motor, Mitsubishi Motors, and four other companies.

There are also reports that government officials are working on a plan for Tesla to invest in Nissan. The importance of the Honda-Nissan merger talks can be seen in the actions of government officials. If Nissan's woes worsen and it is acquired by a foreign company, it could potentially raise concerns about the hollowing out of Japan's auto industry and employment issues. This would pose a significant risk to the Japanese economy as a whole.

Nissan's financial results are dismal: "Net profit down 98.4%"

It can be said that the government has so far made reasonable preparations for such risks. One such preparation is the "Mobility DX Strategy" to be released by the Ministry of Economy, Trade and Industry in 2024. The strategy suggests that Japan will emphasize corporate cooperation in the software field in order to further develop the country's automotive industry. The policy aims to strengthen cooperation between leading companies to cope with the future shift to automotive software.

In recent years, expectations for restructuring in the U.S., Europe, and especially the automotive industry have been growing due to increased competition in areas such as electrification and in-vehicle software development. Depending on developments, Honda and Nissan may move closer to the Toyota camp. The Honda-Nissan merger talks are seen as part of a global effort to restructure the auto industry. A lot will happen from now on.

Honda and Nissan announced their financial results for April through December 2024 on February 13, the day business integration talks failed. Honda raised its motorcycle sales figures but lowered its car sales figures, mainly due to the deterioration of its China business.

Nissan's business situation is even more severe. Net profit fell 98.4% from the same period last year. Full-year net profit was revised downward to a loss of 80 billion yen. Nissan announced additional restructuring measures, stating that it would cut fixed costs by more than 300 billion yen and variable costs by 100 billion yen by fiscal 2026.