Nissan Motor Co. is reportedly in discussions for a potential deal with Honda Motor Co., a move that former Nissan chairman Carlos Ghosn has termed as an indication of the company being in "panic mode." Ghosn, who has been a vocal critic of Nissan's management following his dramatic exit from the company, stated on Bloomberg Television that the merger talks signify a "desperate move" due to the lack of clear synergies between the two automotive giants. He emphasized that both companies operate within the same markets with similar product offerings, making the strategic benefits of such a merger difficult to justify on practical grounds.

The talks come at a time when Nissan is grappling with financial and strategic challenges. The company has been facing declining sales and is under pressure to navigate the increasingly competitive electric vehicle (EV) market, where new players from the U.S. and China are making significant inroads. Honda, on the other hand, while in better financial shape, is also looking to bolster its position in the EV sector. This proposed merger could be seen as an attempt by Nissan to secure its future in a rapidly evolving industry, yet Ghosn's skepticism highlights the potential desperation behind such a strategic pivot.

The discussions have also caught the attention of other investors, with Taiwan's Foxconn reportedly pausing its interest in Nissan amid these developments, suggesting high stakes in the potential merger's outcome.

Is he right?

"It's a desperate move"

Nissan’s discussions about a potential deal with Honda indicate the former is in “panic mode,” according to Carlos Ghosn, the ex-chairman of the struggling Japanese automaker https://t.co/FzkPa0vYcJ pic.twitter.com/NATiSWhgFw

— Bloomberg (@business) December 20, 2024