Ghosn believes that Honda will be “in the driver’s seat” and any cost cutting measures will heavily impact the much weaker Nissan
December 26, 2024 at 09:14
- Carlos Ghosn predicts Nissan will suffer as Honda dominates their upcoming partnership.
- If the deal goes through, Honda would nominate most of the company’s board members.
- The ex-CEO doubts Nissan’s ability to turn things around, even with restructuring plans in place.
A tie-up between Nissan, Honda, and Mitsubishi has the potential to shake up not just the Japanese automotive industry but the global hierarchy of carmakers as well. However, according to Carlos Ghosn, the former Nissan-Renault boss turned international fugitive (we all remember the box incident), this isn’t a partnership; it’s a corporate slaughterhouse where Nissan’s the unlucky lamb. Honda? They’re sharpening the knives.
The former boss of Nissan and Renault predicted something big was on the cards when the three car manufacturers announced plans to collaborate on software development and to share R&D costs for electrification in August. Ghosn described this deal as a “disguised takeover,” and while the collaboration is considered a merger, he believes that Honda will be the one calling the shots.
Read: What Does Renault Think Of Nissan’s Planned Merger With Honda?
“Nissan is in panic mode, looking for somebody to save them from this situation because they’re unable to generate the solution by themselves,” he told CNBC. “Honda is coming, obviously dominating whatever partnership is gonna come out of it. I think, without any doubt, Honda is going to be in the driver’s seat, which is very sad to see after having led Nissan for 19 years [and] brought Nissan to the forefront of the industry, to see that they’re going to be the victim of a carnage, because there is total duplication between Nissan and Honda.”
If a deal is reached, a holding company would act as the parent for both brands and being listed on the Tokyo Stock Exchange. Honda would nominate most of the company’s board members, thanks to its market capitalization being almost four times that of Nissan, and the group could become the world’s third-largest automaker by vehicle sales, behind only Toyota and the VW Group.
“There is practically no complementarity here, which means, if they want to make synergy it is going to be through maybe cost reduction, duplication of plan, duplication of technology, and we know exactly who’s going to pay the price of it. It’s going to be the minor partner, and it’s going to be Nissan,” Ghosn added. In an interview with Reuters, Ghosn said that if a merger does take place, he doesn’t think it’ll be successful.
Honda’s boss, Toshihiro Mibe, has insisted that the merger won’t move forward unless both brands can prove they’re capable of standing on their own two feet. Meanwhile, Carlos Ghosn has expressed “high doubts” about Nissan’s ability to turn things around, even with the restructuring plan announced in November. As part of this plan, Nissan aims to slash 9,000 jobs and reduce global production capacity by 20% in an effort to become “leaner and more resilient.”
For now, the uncertainty surrounding the Japanese automotive industry lingers, with plenty of speculation but no clear answers. Whether this merger ultimately happens remains to be seen, but one thing is certain: Carlos Ghosn isn’t done sharing his unfiltered opinions from wherever he’s currently laying low.
