After Honda and Nissan announced that negotiations had begun to merge their companies, former Nissan CEO Carlos Ghosn expressed his concerns about the deal. Ghosn served as the leader of the automaker for 19 years. The former executive made important statements about the merger decision. Here are the details…
Former Nissan CEO: It is very sad to see this scenario
According to Ghosn, Nissan may be the weakest party in the deal and may be penalized if any cost cuts are made after the merger. Ghosn’s statement was as follows: “I have no doubt that Honda will take over the business and it is very sad to see this scenario for Nissan, which I have led to the top of the sector for 19 years.”
Former Nissan CEO Ghosn’s concerns emerged during an interview with the Squawk Box Europe program. When we compare the companies’ capitals, Ghosn’s speech becomes more meaningful. Honda is approximately four times larger than Nissan and Mitsubishi is also interested in becoming a part of the holding.
Honda and Nissan’s merger plan will see both companies controlled. It also foresees the establishment of a holding company that will be listed on the Tokyo Stock Exchange.
Nissan announced a major cost cut in November, including a 20 percent reduction in worldwide production capacity and the layoff of 9,000 employees. This led Ghosn to claim that Nissan had activated its “panic mode”: “They can’t find a solution on their own, so they’re looking for a savior.”
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