Honda would be willing to restart merger talks to create the world's fourth-largest automaker if Nissan President Makoto Uchida resigns, according to people familiar with the matter. Makoto Uchida, 58, has been one of the strongest supporters within Nissan of striking a deal with Honda. However, the relationship between Uchida and Honda President Toshihiro Mibe quickly deteriorated as Honda became frustrated with the pace of Nissan's restructuring and the extent of its financial problems.
Merger talks collapsed after Honda demanded that Nissan become a wholly owned subsidiary of it, rather than forming a holding company that would put the two companies on "equal status." Honda will be ready to restart talks under a new boss better able to handle internal objections, a person familiar with the matter said.
Uchida has said he wants to stay on until 2026, but he faces pressure from board members and partner Renault to leave in the coming months after talks on a massive $58 billion deal failed. Nissan's board has also begun informal discussions about the timing of his departure, a person familiar with the matter said.
Nissan's capital relationship with smaller rival Mitsubishi Motors remains attractive to Honda because of the latter's plug-in hybrid technology and strong footprint in Southeast Asia. "I regret that it ended this way," Toshihiro Mibe told reporters as merger talks broke down.
However, according to people familiar with Toshihiro Mibe's thinking, one condition for re-proposing the takeover bid is the resignation of Uchida Makoto.
"If discussions about business integration arise again, we will not completely rule out the possibility of resuming discussions," Honda said.