Nissan Motor Co.’s ongoing discussions about a possible deal with Honda Motor Co. have been described as a sign of “panic mode” by Carlos Ghosn, the former chairman of the Japanese automaker. Ghosn, who led Nissan for nearly two decades before his controversial ousting, argued that the partnership lacks clear strategic logic.
“It’s a desperate move,” Ghosn said during an interview with Bloomberg Television. “It’s not a pragmatic deal because frankly, the synergies between the two companies are difficult to find.”
The comments come as Nissan explores options with Honda, including a possible merger, capital tie-up, or the creation of a joint holding company. Honda confirmed this week that it is weighing these possibilities but stopped short of indicating a definitive path forward.
The potential deal between Nissan and Honda reflects growing pressure on Japanese automakers to stay competitive as the global car industry faces significant transformation. Electric vehicles (EVs), autonomous driving technology, and supply chain disruptions have forced legacy automakers to seek new alliances and consolidate resources.
But Ghosn, who played a key role in building Nissan’s previous alliance with Renault and Mitsubishi, expressed skepticism about the strategic fit between Nissan and Honda. Unlike Renault, which complemented Nissan’s global production footprint, Honda operates as a more independent, vertically integrated automaker with less overlap in operations or technology.
Ghosn’s remarks highlight doubts that a Nissan-Honda tie-up would deliver the cost savings, technology-sharing, or operational efficiency typically expected from such partnerships.
Meanwhile, Hon Hai Precision Industry Co., better known as Foxconn, has paused its interest in partnering with Nissan. Foxconn, the Taiwanese company famous for manufacturing iPhones, had previously shown interest in collaborating with Nissan on electric vehicles. However, it now appears to be holding off on further moves until there is tangible progress in the Nissan-Honda discussions.
Foxconn has been actively seeking partnerships in the EV sector as part of its broader effort to diversify beyond consumer electronics. Its decision to wait for clarity from Nissan and Honda underscores the high level of uncertainty surrounding the deal.
Carlos Ghosn’s relationship with Nissan remains contentious. The former auto executive, once celebrated as the architect of Nissan’s revival, has been locked in a legal battle with the company since his arrest and ousting in 2018. Nissan accused Ghosn of underreporting his income and misusing company assets for personal gain. Ghosn, however, maintains his innocence and has accused Nissan of orchestrating a coup to block his plans for deeper integration between Nissan and Renault.
The fallout from the scandal continues to reverberate. Ghosn fled Japan while on bail in late 2019, pulling off a dramatic escape that involved being smuggled out of the country in a music-equipment box aboard a private jet. He has since resided in Lebanon, which does not have an extradition treaty with Japan.
The bitter legal dispute between Nissan and Ghosn remains unresolved, with lawsuits filed in Japan, the Netherlands, and other jurisdictions. Both sides have accused each other of causing financial damage, and Nissan has sought to recover millions of dollars in compensation from its former chairman.
