Nissan CEO Acknowledges That the Brand Cannot Endure Without External Investment | Carscoops

      Taiwanese manufacturing powerhouse Foxconn has shown interest in acquiring Renault's share in Nissan.

      Nissan’s CEO has acknowledged that the company will struggle to persist without external assistance.

      The automaker's nomination committee may convene on March 6 to deliberate on future actions.

      Makoto Uchida has cautioned shareholders to anticipate a net loss of $536 million.

      Although a merger between Nissan and Honda is not on the horizon, recent reports indicate that Nissan might be open to receiving some investment from the Japanese automaker. This could pave the way for collaboration with Honda, along with Mitsubishi and Foxconn.

      A report from Japan suggests that Nissan is still interested in collaborating with Honda after initial talks faltered in February. The brand is in a challenging financial situation and appears willing to take necessary measures for survival. This might involve the replacement of current CEO Makoto Uchida, who has been with the company since 2019.

      According to sources, if Nissan opts to accept investment from Honda, Uchida may be ousted, as reported by Nikkei Business. The executive has stated he won't obstruct the decision of Nissan’s nomination committee or the board if they choose to let him go.

      A Nissan insider revealed that the nomination committee will gather on March 6 to evaluate the next steps. If Uchida is removed, current chief financial officer Jeremy Papin could assume the role temporarily and oversee new negotiations with Honda.

      Bloomberg reports that Uchida has been keen to stabilize Nissan's business before departing. However, he recently informed shareholders to prepare for a $536 million net loss for the fiscal year ending in March, despite earlier predicting a net profit of $2.5 billion in a forecast made in May 2024.

      Foxconn has played a significant role in discussions regarding Nissan's future in the past few months. It is understood that the Taiwanese conglomerate's reported interest in acquiring the automaker last year led Japanese authorities to encourage Honda to collaborate with Nissan, aiming to maintain Nissan's identity as a Japanese company.

      After the negotiations between Nissan and Honda to create a joint holding company fell apart, Uchida remarked on the difficulties Nissan might face in surviving without partners. He stated, “Under the current situation, it is difficult to keep up with competition just by Nissan itself, so we had a serious discussion about the proposal by Honda. We were unable to have confidence in how much Nissan’s independence will be ensured and whether our potential will be fully brought out if Nissan becomes Honda’s wholly owned subsidiary.”