Nissan was deeply in trouble last year when the competitor Honda offered a lifeline: a $ 60 billion bind for two Japanese vehicle manufacturers to compete against Chinese brands that raise the car industry. For many years, sales and management turbulent has reduced Nissan, especially after it has underestimated the need for hybrids in the United States.
But six people who are well aware of the matter say that the merger talks have been revealed for more than a month due to adequate warning about Nissan’s pride and its predicament.
Three people said that Nissan, despite the weakness of the 2020, had urged equal treatment in negotiations until 2020, which was Japan’s second largest automotive manufacturer behind Toyota.
Honda Nissan pressed its employees and factory ability, but Nissan did not want to consider politically sensitive factory closures, three sources said. They said that despite the growing difficulties, Nisan felt that it could heal its own.
Three people said that the contradiction was a contract that Honda Management had seen that Nissan’s slow decision was made, and that the contract that made one of the world’s largest automobile manufacturers helped Darpido.
This account of forces that reduced the mega -connected forces contain unprecedented information, which includes details of the industries that Nissan wanted to be open, its resistance to Honda’s pressure on deep cuts, and the reaction to some of Honda’s demands. The story is based on Reuters interviews with more than a dozen people, and they all talked about unnamed status due to the sensitivity of the title. Reporting on the thoughts within Nissan when confronted with a deep crisis reveals a new light. The upstairs car manufacturer is now facing an additional threat to US charges on vehicles made in Mexico, which is a quarter of its US sales. Both Nissan and Honda earn revenue on Thursday.
“I think this is a management issue,” said Belham Smitors Associates Analyst Julie Boot on the turbulence in Nissan. “They fully evaluate their position and their brand value and the ability to turn business.”
Nissan and Honda refused to comment on the specific features of the negotiations, as described by Reuters.
Nissan CEO Macoto Supita visited his opponent Toshihiro Mahebi last week, saying she wanted to complete the debate after the Honda sub -project.
Both vehicle manufacturers have said they will provide an update this month.
Very little, too late
In November, when sales in China and the United States are deteriorating, Nissan shocked investors when it reduced its profit poll by 70%. It announced a breakthrough plan, which included a fifth of a fifth of the 9,000 jobs and global capabilities, and some researchers found very little and late.
Supita promised to confiscate half of her pay, and focused on turning the business into thin and flexible.
In December, Nissan and Honda announced plans to unite, and the development of negotiations they had since March 2024 said they wanted to cooperate with technology.
But two people said that connecting debates would quickly hit a wall in calculating the partner rate for the integrated company.
Personally, he expressed doubts about the chances of the Supita Agreement, said one of the people. Honda managers complained that Nissan’s decision was very slow, four people said. A public update in negotiations was first set before the end of January to mid -February.
Two sources said that the Honda managers felt that there were no details for Nissan’s breakthrough, and they were frustrated by the fact that they saw a sufficient reduction in factory capabilities.
Reuters could not determine whether Honda had requested a certain number of work cuts or whether specific factory was identified for efficiency reduction.
A person said that Nissan does not want to close the factories because it will force them to write their value on paper and affect its income.
As part of Nissan’s breakthrough, already promised work cuts are 7% of its global staff. A person said Honda had cut more people in China in the last two years.
Honda, for its role, seemed to be unwilling to create its plans, indicates that Nissan was not considered equivalent to Nissan, said one who familiar Nissan’s thought.
Kyushu visit
In late January, Nissan Administrator Hidiyuki visited the Sakamoto southwest island, Kiyushu, which was a 500 -year -old battery EV.
Sagamoto, surrounded by local politicians, said the vehicle manufacturer would not reduce the capacity at its current Kiyushu plant. Kiyushu said “the most competitive basic fundamental geopolitical politics” and future EV projects are important.
The day after his visit to Sagamoto Kiyushu, Honda’s Mybaye Supita told Nissan Honda that Nissan Honda should become a subsidiary, and a person says that the original link to understand the two signed later last year is not in the reference.
Reuters were unable to determine whether Maipe’s action was triggered by Nissan’s announcements in Kiyushu. Nevertheless, the Kiyushu journey has bestowed on the tensions between companies.
Kiyushu is not the only plant that Nissan considers untouchability. Smirna in Tennessee, the Aguascalites in Mexico and the Britain’s Sundarland are all. A source said it was important to strategy, and that the vehicle manufacturer did not want to close or reduce their taxes.
Honda’s sudden change in the structure of the contract reflected its increasing patience with Nissan at the speed of negotiations, two people said.
Nissan was indiscriminately by the move, which went against the previously agreed Memorandum, two people said. Within Nisan, the project was seen as “brutal” and an insult to the old vehicle manufacturer, Nissan’s Ka ITY.
Renault, the best partner of Nissan, suggested that the latest information transaction “will acquire Nissan by Honda without a control premium for Nissan shareholders, although there is no privacy for debates. Such a decision was “unacceptable”, Renault said it would “seriously protect” its interests.
New partners
It is not clear that if there is any, vehicle manufacturers can be brought back to the table. It seems that they can return to their original agreement by combining technology, three people said.
If the two companies agree to end the discussions, they will not be responsible for the fee of Rs 100 billion yen ($ 650 million), according to their December understanding. Reuters said Nissan would be open to work with new allies, including Foxscan, a Taiwanese contract manufacturer who creates Apple’s iPhones. Foxconn did not respond to the request for the comment. Foxconn leader Yang Liu said on Wednesday that its purpose was to cooperate with Nissan, and it did not get it.
EV on Taiwanese Company
A strategist Amir Anwarsade with Japanese stock consultant, asymmetrical consultants, said that Foxconn would be a liberal lawyer than Honda.
“Whatever you think about their cars and their presence and so on, the brand is still very identified,” he said about Nissan.
So far, the Japanese government has given a sense of how to see the breakup of negotiations between Honda and Nissan and whether it is open to Foxcone, which is also the best partner in the consumer electronic company, Sharp Corp.
As for Nissan, the question is now that Boot said what the administration would do.
“They do not have a realistic view of what is happening in the automotive industry and what really happens with Nissan.”
