In December 2024, reports emerged that two of Japan’s automotive juggernauts are looking to form a merger akin to the automotive equivalent of a ‘dream team.’
On Dec. 23, the leaders of Japanese automakers Nissan (NSANY) and Honda (HMC) announced that they intend to merge under a holding company in an effort to stay competitive against its rivals in a world shifting towards electric vehicle adoption.
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“The rise of Chinese automakers and new players has changed the car industry quite a lot,” Honda’s CEO Toshihiro Mibe said. “We have the potential to be a world-class, leading company in new mobility. By 2030, we need the artillery to compete on the battlefield. So, we are starting today.”
Though many questions exist stemming from what Nissan and Honda bring to the table regarding cars, a new report denotes that new concerns have been brought up about Nissan that could spoil the deal for Honda.
The Renault and Nissan logos are seen outside a showroom in Crewe, England.
Christopher Furlong/Getty Images
Honda is concerned about Nissan’s French baggage, says report
In the newest plot twist, a new report from Bloomberg reports that Honda has demonstrated concern about the potential influence of French automaker Renault on the planned merger between them and Nissan, going as far as to ask Nissan if it could buy out their stake.
Renault and Nissan’s relationship goes as far back as 1999, when the French automaker bought 36.3% of its Japanese partner during a moment of financial hardship. By 2023, Renault owned 43%, which it reduced to a 35.7% stake worth about $3.6 billion in 2025.
Unnamed sources who spoke to Bloomberg suggested that Honda is worried Nissan can be vulnerable to outside influence while the merger plans are being negotiated — an event that could derail the merger process and break a deal before ink meets paper.
Related: iPhone maker Foxconn is serious about stake in struggling car company
The (possible) Foxconn Issue
Another party that has demonstrated an interest in buying a piece of Nissan was not another Japanese, French, Italian or American automaker, but rather a Taiwanese electronics giant that is more well-known for building iPhones: Foxconn.
Shortly after Honda and Nissan merger reports started to circulate in December 2024, Taiwan’s state-run Central News Agency reported that Foxconn’s electric Chief Strategy Officer Jun Seki had landed in France to discuss the potential purchase of a stake in Nissan from Renault.
Seki, a former Nissan executive who worked with the automaker on multiple continents, was reportedly in France to negotiate the possible purchase of at least some part of Renault’s holding in Nissan.
Despite owning 51% of the Foxtron brand of EVs with Taiwanese auto manufacturer Yulon, Foxconn produces no cars.
According to the Wall Street Journal, acquiring Nissan would overcome its limitations with auto design and production as it seeks to obtain its advanced manufacturing technology.
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Honda has some very tough terms for Nissan
During the joint press conference on Dec. 23, Honda CEO Toshihiro Mibe made it clear that the purported merger is not a get-out-of-jail card from financial hell for Nissan, noting that Nissan would have to prove to Honda that it is worthy of acquiring.
“This is not a rescue of Nissan,” Mibe said, adding that Nissan getting its act together was a “prerequisite” for the merger.
According to a report by Nikkei Asia, Nissan is under intense pressure to make huge improvements and increase its profits. During the automakers’ press conference, Nissan and Honda showed a graph that projected Nissan’s goal of increasing its operating profit by August 2026 — the time the merger is to take effect.
By then and now, Nissan will need to earn the equivalent of roughly $2.6 billion in fiscal 2026. However, it is hemorrhaging money.
In the first half of fiscal year 2024, Nissan’s operating profits took a 90.2% dive from about $2.3 billion to $225 million. At the same time, net income took a much harder dive, dropping from about $2.02 billion to $131 million, a 93.5% drop from the same period in the previous fiscal year.
Foxconn is traded on the Taiwan Stock Exchange under ticker number 2317 and on the London Stock Exchange under ticker HHPD.
The Nissan Motor Company trades on OTC markets in the United States as NSANY and on the Tokyo Stock Exchange under the ticker number 7201.
The Honda Motor Company is listed on the New York Stock Exchange under the ticker HMC.
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