Carlos Ghosn Warns of 'Carnage' in Honda-Nissan Merger

Former Nissan CEO Carlos Ghosn told CNBC that the company would be 'a victim of a carnage' if it merges with Honda due to 'total duplication' between the Japanese automakers. Honda and Nissan on Monday unveiled plans for a potential business integration in order to compete in the electric vehicle transition. Ghosn, who faces financial misconduct charges in Japan, said Nissan appeared as if it is 'looking for somebody to save them from the situation' as it grapples with waning sales and profit.

'I think, without any doubt, Honda is going to be in the driver's seat, which is very sad to see after having led Nissan for 19 years brought Nissan to the forefront of the industry, to see that they're going to be the victim of a carnage, because there is total duplication between Nissan and Honda,' he told CNBC's 'Squawk Box Europe'. 'There is practically no complementarity here, which means, if they want to make synergy it is going to be through maybe cost reduction, duplication of plan, duplication of technology, and we know exactly who's going to pay the price of it. It's going to be the minor partner, and it's going to be Nissan,' Ghosn said. Under current proposals, a holding company would act as the parent of both firms and be listed on the Tokyo Stock Exchange, with Honda — which has a market capitalization around four times that of Nissan — nominating most board members of the new entity. Nissan's strategic partner. The integrated group would also represent a landmark in automotive industry consolidation, which has been long expected in both Japan and worldwide as businesses struggle to shoulder the development costs of electric vehicles and autonomous driving technology

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