Honda Seeks to Oust Renault from Nissan Partnership

Honda hopes Nissan will repurchase Renault’s shares, but the move could cost billions

The Plot Thickens in the Honda-Nissan Merger Talks

The proposed merger between Honda and Nissan has taken an intriguing turn. As many in the automotive industry are aware, French automaker Renault currently holds a 35.7% stake in Nissan.

However, Honda appears to prefer merging with a fully independent Nissan. Reports indicate that Honda has suggested Nissan repurchase Renault’s shares, a move that would cost approximately $3.6 billion at current exchange rates.

This doesn’t seem to stem from a personal dispute between the companies. According to Bloomberg, Honda is concerned that Renault’s stake could be sold to an unknown third party during the merger process, potentially disrupting the plans.

Such concerns are not unfounded—rumors surfaced before the merger talks became official that Foxconn was interested in purchasing Renault’s stake. Given the potential for this merger to create one of the largest automotive conglomerates in the world, Honda’s desire for a streamlined process is understandable.

Renault’s Position and Market Reactions

This situation also suggests that Renault may not fully support the Honda-Nissan merger. The official press release announcing the merger notably excluded any mention of Renault, despite its significant ownership in Nissan. In a brief follow-up statement, Renault said it would “consider all options based on the best interest of the Group and its stakeholders.”

Representatives from Nissan and Honda declined to comment when approached by Bloomberg.

Future Steps and Challenges

At this stage, Honda and Nissan are still assessing whether a merger is feasible. A decision is expected by the end of January. If approved, the next steps to integrate the companies would occur by late 2026. A

ny action by Nissan to buy out Renault’s stake is unlikely before the end of January and remains uncertain due to doubts about Nissan’s financial ability to complete such a purchase.

Should the merger proceed, a new holding company similar to Stellantis would be established. While Honda and Nissan would maintain their separate brands and product lineups, they would share platforms and technology.

Mitsubishi, a member of the longstanding Nissan-Renault-Mitsubishi alliance, has shown interest in joining the new conglomerate but has not yet made an official commitment.

Author:

  • Growing up with a father who was a mechanic I had an appreciation for cars and motorcycles from an early age. I shared my first bike with my brother that had little more than a 40cc engine but it opened up a world of excitement for me, I was hooked. As I grew older I progressed onto bigger bikes and...

    View all posts