The Japanese publication Asia Nikkei shared details about the possible merger of the automakers, shedding a new and quite different light on the issue. According to the new information, Honda wants Nissan to prove its financial stability, with a profit of about 400 billion yen ($ 2.6 billion) in fiscal 2026. And Nissan estimates that it will be able to make only 150 billion yen ($ 0.95 billion) in fiscal 2024.
In the first half of fiscal 2024, Nissan's net income fell from $ 2.02 billion to $ 131 million. To reduce costs, the Japanese company began to lay off employees, but it did not solve the biggest problem - the difficulties in meeting sales plans. On the other hand, Honda's financial stability contrasts sharply with Nissan's problems.
If Nissan does not provide a clear strategy for exiting the crisis and increasing net profit, then the alliance with Honda may not happen. Honda's president directly stated that Nissan must be a company that "stands firmly on its feet". After reducing production capacity, Nissan will be able to produce four million cars a year. However, the expected result for the fiscal year 2024 is only 3.4 million cars.
Honda requires Nissan not only to improve financial indicators. Honda insists that Nissan's alliance with Renault remain in the past. The French auto giant owns a 35.7% stake in Nissan, and the authorities in the Land of the Rising Sun do not want the automaker to fall under foreign influence.