Ghosn Warns of 'Carnage' for Nissan in Honda Merger

  • 📰 CNBC
  • ⏱ Reading Time:
  • 75 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 54%
  • Publisher: 72%

Automotive News

Nissan,Honda,Merger

Carlos Ghosn, former Nissan CEO, expressed his concerns about a potential merger between Nissan and Honda, predicting a detrimental outcome for Nissan due to 'total duplication' between the two companies. He believes Honda will dominate the merged entity, leaving Nissan vulnerable.

Former Nissan CEO Carlos Ghosn told CNBC that the company would be '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.during a press conference on Monday. 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.that a combined company would be able to share the intelligence and resources necessary to compete in the EV transition and deliver economies of scale, boosting operating profit to a projected 3 trillion yen ($19.1 billion) in the long-ter

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'It’s A Desperate Move': Ex-Nissan Boss Carlos Ghosn On Honda MergerThe former Nissan-Renault chief isn't staying quiet about the former's potential merger with Honda. Plus: a Tesla recall, and Cybercabs in Austin?
Source: InsideEVs - 🏆 579. / 51 Read more »

Carlos Ghosn Claims Japan Forced Honda Into ‘Desperate’ Nissan Merger TalksThe former chairman of Nissan criticized the potential Honda merger, calling it a desperate move lacking industrial logic or practical synergy
Source: Carscoop - 🏆 306. / 63 Read more »