Former Nissan CEO Carlos Ghosn has warned that the company will be “victim of a carnage” if it merges with Honda, citing “total duplication” between the two Japanese automakers. Ghosn, who faces financial misconduct charges in Japan and once led three automakers as part of the Nissan-Renault-Mitsubishi alliance, believes that Honda is likely to be the dominant partner in any potential merger.
Ghosn stated that there is “practically no complementarity” between Nissan and Honda, which means that any synergy gained from a merger would come primarily through cost reduction and duplication of technology. He warned that Nissan will pay the price for this, particularly if the merged entity is not able to successfully integrate itself.
Nissan’s strategic partner Mitsubishi has also expressed interest in joining the potential group, which would significantly increase the combined company’s size and scale. The merger plan aims to create a holding company that will be listed on the Tokyo Stock Exchange, with Honda nominating most board members of the new entity.
If successful, the merged group would become the world’s third-largest automaker by vehicle sales, behind Japan’s Toyota and Germany’s Volkswagen. However, Ghosn expressed “high doubts” about Nissan’s ability to successfully execute its turnaround plan and has warned that the merger may be a desperate attempt to save the company from financial crisis.
Source: https://www.cnbc.com/2024/12/24/carlos-ghosn-nissan-could-face-cost-cutting-carnage-in-honda-merger.html