TOKYO, Jan 31 (News On Japan) - Honda and Nissan's negotiations over a potential business integration have hit a roadblock, with concerns that Nissan’s restructuring measures are inadequate.
The two automakers began discussions last month, initially aiming to determine a direction by the end of this month. However, both companies stated that they are still in the midst of various discussions and have decided to postpone their decision until mid-February.
Honda President Toshihiro Mibe (Last Month):
"To be frank, as I mentioned earlier, there is a possibility that this may not come to fruition."
A key condition for the integration is Nissan’s implementation of restructuring measures due to its ongoing financial struggles. However, sources indicate that Honda views Nissan’s restructuring plans, particularly in North America, as insufficient.
A Honda representative said:
"Honestly, it all depends on Nissan. The real question is whether Nissan executives can make concrete restructuring decisions with a sense of urgency."
A Nissan representative countered:
"Our restructuring plan is something we will execute on our own. The real decision lies with Honda."
Some sources warn that if an announcement is not made by the two companies' earnings release on February 13, the deal may collapse. The talks on this "historic business integration" have now reached a critical stage.
Source: TBS
