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 resignationDecember 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.
Iconic car brand ‘on brink of collapse’ as ‘bosses warn company has just 12 months to survive’
ONE of the world's largest car manufacturers reportedly could go under within 12 months if it doesn't receive support.
The firm is looking to sure up its future by growing a partnership with its former rival after the reported collapse of a three-way alliance.
Nissan was one-third of a strategic deal with Mitsubishi and Renault to share financial backing and expand all their markets in Europe, Japan and the US.
The agreement dates back to 1999 but now could be on the brink of collapse.
A report from the Financial Times cites two anonymous “senior officials” at the firm suggesting that Renault is looking to reduce its financial stake in the Japanese carmaker.
The withdrawal of funding means, according to the same sources, that Nissan could require support from the Japanese or US governments within the next year just in order to stay afloat.
One of the officials said: “We have 12 or 14 months to survive.
“This is going to be tough.
“And in the end, we need Japan and the US to be generating cash.”
Nissan has already cut 9,000 jobs across its global operation, while its CEO Makoto Uchida took a 50% pay cut in an economy drive.
The business is working through an emergency recovery plan, which will see it cut output by 20% and slash around £2bn in costs.
Its struggles have partly been blamed on the lack of a strong hybrid lineup, which has helped rivals like Toyota and Honda through the global collapse in EV sales.
In a press conference earlier this month, Mr Uchida said: “This has been a lesson learned and we have not been able to keep up with the times.
“We weren’t able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular.”
