Honda - Business Outrank

Nissan is having a second think about a possible investment from Honda after discussion to build a joint holding company came up blank. Now, the automaker is considering a more extensive partnership that could extend beyond Honda to include Hon Hai Precision Industry and Mitsubishi Motors as well. The unsealed sources of the report said that while the future of Nissan as a wholly owned subsidiary remains clouded, the discussion on Honda's investment is expected to continue. However, a key condition for any deal it appears to be the departure of Nissan President and CEO Makoto Uchida. The sources said that the company's nomination committee has reportedly advised that Uchida should not be retained in office and the final decision on this matter is expected to be taken at a board meeting to be held in the middle of March. The potential partnership with Honda is likely to alter the future of Nissan. This is because the company is understood to be seeking strategic alliances to build its strength in the global auto market. Team-up with Honda, a leader in hybrid and electric vehicle technologies, could give Nissan a competitive advantage as the world shifts towards electric mobility. On the other hand, Hon Hai Precision Industry, better known as Foxconn, may have its strength in electronics and EV manufacturing to add to Nissan's capacity. In recent times, Nissan has had issues with leadership and changing industry trends. The reported investment talks with Honda seem to be a conscious effort to stabilize the company and improve its market reputation. If the board decides to proceed with Honda's investment, it could be a turning point for Nissan's corporate strategy.

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