Honda Proposes Making Nissan a Subsidiary in Merger Talks

TOKYO, Feb 05 (News On Japan) - Honda has proposed making Nissan a subsidiary as part of ongoing discussions on a potential business integration, according to sources.

Honda President Toshihiro Mibe commented on the matter, stating, "Nissan is working hard, and we are observing."

The two automakers announced in December last year that they would explore forming a holding company, under which both firms would operate as subsidiaries. They had planned to decide on a direction by mid-February.

However, sources indicate that Honda has suggested an alternative plan, in which it would acquire Nissan's shares and turn it into a subsidiary rather than establishing a holding company. Honda is believed to be pursuing this approach to enhance operational efficiency.

Despite this, strong opposition has emerged within Nissan, with many voicing concerns that "a subsidiary structure is completely unacceptable," casting doubt on whether the plan will materialize.

Source: TBS

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