Former Nissan CEO Carlos Ghosn claims Honda is being pressured into merger

Former Nissan CEO, and current fugitive, Carlos Ghosn has criticised his former car company yet again, this time following reports that it’ll merge with fellow Japanese brand Honda.

Last week, Nikkei Asia reported Honda and Nissan will soon begin negotiations which would see Japan’s second- and third-largest carmakers by volume join forces to stay afloat.

The two brands are facing a loss of sales in key markets due to the rise of electric vehicles from more affordable rivals.

While the carmakers are yet to officially announce the merger, Mr Ghosn – who led Nissan from 2005 until being dramatically sacked in 2019 following allegations of under-reporting his income – told Bloomberg he sees it as a “desperate move”.

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“It’s a desperate move. It’s not a pragmatic deal because frankly, the synergies between the two companies are difficult to find,” Mr Ghosn said.

“There is practically no complementarity between the two companies. They are in the same markets. They are the same products. The brands are very, very similar.”

Mr Ghosn went on to claim Honda isn’t keen on the prospect of a merger, and is effectively being persuaded by Japan’s Ministry of Economy, Trade, and Industry (METI) to do so in order to keep itself alive.

“From one side, Nissan, it’s a desperate move to try to find the future. And from the other side, Honda, which I understand they are not very excited about this move.

“You have to count with METI in Japan, the METI had the big say in it.

“At the end of the day, they are trying to figure out something that could marry the short-term problems of Nissan and the long-term vision of Honda.”

According to last week’s Nikkei Asia report, Honda and Nissan will reportedly bring in Mitsubishi as part of the merger, which would form one of the world’s largest auto groups.

In March, Honda and Nissan confirmed they were investigating a potential partnership in the “fields of vehicle electrification and intelligence”, which could lead to sharing electric motors, battery technology, software platforms, and other core EV components.

Since then, Nissan has found itself in the headlines for the wrong reasons, with a report by The Financial Times last month claiming a senior official close to the carmaker said “we have 12 or 14 months to survive”.

A source close to Renault – which has had an alliance with Nissan since 1999 – reportedly told the publication it would be open to selling a portion of its shares to Honda.

Renault is wanting to further reduce its stake in Nissan – having cut its holding from 43.4 per cent to under 36 per cent last year – leaving the Japanese brand searching for a long-term, steady shareholder such as a bank or insurance group to provide financial stability.

The Renault-Nissan Alliance – which has since become the Renault-Nissan-Mitsubishi Alliance – was orchestrated by Mr Ghosn in 1999 after he became the French carmaker’s CEO.

While he became known as ‘Le Cost Killer’ for his ruthless approach to reducing unnecessary spending, he was dumped from Nissan and Renault for stealing company funds.

After being arrested in Japan in 2018, the executive was then jailed and placed under house arrest before escaping and fleeing the country in the large instrument box aboard a private jet, where he fled to his homeland of Lebanon which doesn’t have an extradition treaty with Japan.

A French magistrate issued five international arrest warrants against Mr Ghosn in 2022, and last year ‘Le Cost Killer’ sued Nissan for US$1 billion (A$1.45 billion), claiming lost earnings, costs and punitive damages.

In November 2023, a Lebanese judge ruled to evict Mr Ghosn from his home in Beirut, after the property’s owners filed legal action against him in 2019 for trespassing.

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