Toyota boss breaks silence after talks over ‘mega-merger’ to save iconic rival firm ‘from collapse’ break down

TOYOTA's boss has cast doubt on whether the collapsed “mega-merger” between Nissan and Honda was a good idea.

Akio Toyoda, 68, Toyota chairman, has revealed behind-the-scenes details of the talks to try and save Nissan from collapse.

Toyoda, who was Toyota's CEO for over a decade until 2023, also pointed out that both companies failed to mention a key ingredient in their press conference on December 23 last year- cars.

Toyoda told Automotive News: “I was disappointed hearing what they talked about because they didn’t talk at all about the products.”;

Instead, the press conference focused on business jargon and was filled with buzzwords like “synergies”; and “business integration”; aiming to evolve Japan’s industrial base into a “leading global motility company.”;

This comes after, the much hyped merger between Nissan and Honda spectacularly collapsed after Honda proposed making it's rival a subsidiary rather than an equal partner.

Nissan has been plagued by financial difficulties and insiders told the FT it was on “on the brink of collapse” and would only survive 12-14 months in it's current form.

Toyoda also questioned the benefits of the merger if it had gone through, arguing that “just having volume doesn’t necessarily that you’re strong”; or competitive.

He asked: “Do you know an example of where there was a consolidation of companies and they've made a big success for the competitiveness?

“Short term, you may see some positive impacts.

“But long term, it can be quite difficult to come to a state where everyone says they’re glad they’ve combined.”;

The seasoned car boss argues that volume can be a blessing and a curse.

Toyoda found that selling over 10 million cars last year “becomes really troublesome.”;

He should know as Toyota sold nearly 11 million cars last year.

At the end of 2024, Nissan executives disclosed to the FT that the company may only have 12-14 months left to survive in its current form.

The company has accepted it made a “strategic error”; in failing to develop hybrid motors which have been remarkably popular as sales of EVs have dropped.

In a bid to shake up the flailing company, Nissan announced a spanking new CEO, Ivan Espinosa, 53, earlier this month.

Espinosa has been transparent about the four or five simultaneous crises facing the company, ranging from low morale and a damaged brand, but reiterated that Nissan is still “open to partnerships.”;

At the end of 2024, Nissan executives disclosed to the FT that the company may only have a year left to survive in its current form.

The company has accepted it made a “strategic error”; in failing to develop hybrid motors which have been remarkably popular as sales of EVs have dropped.

Giant car manufacterer mergers have had mixed success historically.

Volkswagen’s consolidation of multiple brands has reportedly been a triumph.

However, Stellantis, the product of a 2019 merger between Chrysler and French motor company PSA seems to be having teething troubles.

Stellantis' CEO, Carlos Tavares, announced his shock resignation December 1 last year.

Nissan’s financial woes first emerged last May when it asked dealerships to sell its cars at a loss.

The company is facing losses of $534 million this month.

This is despite an explosive announcement that it plans to sack 9,000 employees globally and reduce production last December.

It recently announced plans to shut three factories worldwide by the end of 2026 and reduce vehicle development timelines from 52 months to 37 months.