Report: Honda to resume merger talks with Nissan under one condition

The fallout from the Nissan-Honda merger talks has revealed some gritty details about the collapsed deal between the two automakers.

Yesterday, AutoIndustriya.com reported that Honda supposedly wanted Nissan to stop using its e-Power hybrid technology in favor of their e:HEV system. With Honda also planning to turn Nissan into a subsidiary rather than an equal partner, this apparently hurt Nissan's pride and became one of the major points wherein the two brands failed to come to an agreement.

While it seems all is lost, Honda is reportedly still interested in resuming merger talks with Nissan. However, Honda will only go back to the negotiating table if Nissan Motor Corporation CEO Makoto Uchida steps down.

According to a report by the Financial Times, Honda is prepared to resume talks with Nissan under a new boss who can better manage opposition during negotiations. Moreover, Honda is still attracted to Nissan's ties with Mitsubishi which has its own plug-in hybrid (PHEV) technology, as well as a huge presence/market share in Southeast Asia.

Uchida intends to stay as Nissan CEO until 2026 which means Honda may have to rethink its strategy about resuming merger talks. However, Uchida is reportedly facing pressure to depart as Nissan's chief executive after the merger deal with Honda collapsed last week. In addition, informal discussions over Uchida's exit as Nissan CEO are apparently already being discussed by the company's board of directors according to a person familiar with the matter.

Currently, Nissan is undergoing a major restructuring and cost-cutting to keep the lights on as they struggle with their finances and slump in sales. Nissan is looking to partner with electronics giant and iPhone manufacturer Foxconn although the latter is more interested in acquiring Nissan shares as a means to secure contracts to produce EVs.

Will Nissan and Honda get back on the negotiating table or will radical changes be happening soon?