Nissan is facing a critical crisis, with its CEO declaring the company is in “emergency mode.” In a bid to stabilize, Nissan plans to cut 9,000 jobs, delay upcoming product launches, and urgently seek a new financial backer. To make matters worse, the automaker is reportedly considering a merger with Honda as part of its recovery strategy.
Adding another twist to the unfolding saga, former Nissan CEO Carlos Ghosn—who famously escaped Japan in 2019 in a musical box and is now living in self-imposed exile in Lebanon—has shared his thoughts on the situation. According to Ghosn, Nissan is in serious trouble, and Honda isn’t exactly eager to jump into a merger.
Carlos Ghosn on Honda-Nissan merger talks
“It’s a desperate move,” Ghosn said during an interview with Bloomberg Television on Friday. “This isn’t a pragmatic deal because, frankly, the synergies between the two companies are hard to find. There’s almost no complementary relationship between them. They compete in the same markets, offer similar products, and their brands are very much alike.”
Related: Nissan Will Struggle to Find Its Place- Ghosn
Ghosn continued, “On one hand, Nissan is desperately trying to secure its future. On the other hand, Honda doesn’t seem too enthusiastic about the idea. But, as I understand it, they are being pressured by METI in Japan.”
METI refers to Japan’s Ministry of Economy, Trade, and Industry. Ghosn believes the government is pushing Honda into this deal, seeing it as a necessary step to keep one of Japan’s largest automakers afloat. He even put it more bluntly, stating that the pressure is undeniably coming from the top.
“Having spent so many years in Japan, I know just how powerful the METI can be,” Ghosn explained. “In my view, there’s no real industrial logic behind it, but sometimes you have to choose between performance and control. Of course, it’s ideal if you can have both, but there are moments when you have to make a choice. And, based on what I know about METI, they’ll always prioritize control over performance. So, without a doubt, they pressured Honda into this deal.”
Related: Nissan CFO Quits as Automaker Grapples with Crisis & Drastic Cuts
While it’s easy to dismiss Ghosn’s words as the bitter rantings of a former CEO, he’s actually shown a fair amount of insight into the situation. Back in August, he called a potential deal between Nissan, Honda, and Mitsubishi a “disguised takeover” by Honda of the other two. While the idea of Honda taking over Mitsubishi hasn’t gained much traction, Ghosn’s take on the Nissan deal does make him sound a bit prophetic.
That said, if these two brands do merge, it’s going to be a tough road ahead. “You have to understand that Honda is an engineering powerhouse, and so is Nissan. Both companies are incredibly proud of their engineering. So the real challenge here is deciding which technologies will be adopted by the new company, if they merge, or by the new alliance. It’s going to be a very difficult process,” says Ghosn.
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