The insolvent former executive says the Japanese government has pushed Honda into the deal for the sake of the economy.
The auto business was shocked by Tuesday’s suggestions of a possible Nissan-Honda merger. Even though there is no formal agreement yet, Carlos Ghosn, the former CEO of Nissan, has spoken his thoughts about the potential deal. In a recent Bloomberg interview, the controversial former CEO called out a Nissan-Honda partnership and its rationale.
Ghossein told Bloomberg he believed it was “hopeless. Finding synergies between the two companies is difficult; thus, the deal isn’t feasible. Seldom are there qualities that the two companies have in common that make them work well together? if you can have both, that’s better. But there are moments when you have to choose, and without a doubt, with METI and everything I know from it, they control over the same products.
“The proposed merger isn’t something homogenous between the two Japanese brands; he believes that Japan’s Ministry of Economy, Trade, and Industry (METI) is pushing the deal to the Japanese economy.
Several years ago, under house arrest & awaiting trial on several charges related to alleged financial crimes made during his time at Nissan, Ghosn made a flamboyant, Hollywood-style exit from Japan. He was perhaps the company’s most successful CEO, having served in that capacity for 16 years. It should come as no surprise that he was scathing of Nissan in his interview with Bloomberg, considering how his relationship with the firm ended.
Nissan and Honda have been together for a few months, and neither corporation has commented on a potential merger at this time. In August, a memorandum of intent to investigate potential future projects was signed. However, a merger involves much more than just exchanging ideas. The conglomerate would rank among the biggest automakers in the world if it were finished. But it wouldn’t be a simple task, Ghosn said.
“You must realize that Honda is an engineering company with a strong engineering department. What’s more, Nissan gets a hold of vanity in its design. Therefore, the challenge here is to determine which technology will be embraced by the new business, whether it is a merger.
