Can a Nissan-Honda Merger Work? No, Says Carlos Ghosn

The auto industry is abuzz with conversation about the confirmation that Nissan and Honda—and possibly Mitsubishi—are discussing a possible merger or partnership. Among those adding their voice to the discussion is former Nissan head Carlos Ghosn, who did so in a series of odd online interviews from his self-imposed exile in Lebanon.

You likely won’t be surprised by what the obviously bitter former executive has to say. For instance, the story that Bloomberg ran is titled, “Carlos Ghosn Predicts a Reckoning for Car Industry ‘Weaklings’.” And he isn’t necessarily talking just about Nissan and Mitsubishi; he’s convinced that big companies, like the Taiwan-based electronics giant Foxconn, which is interested in Nissan, will soon swallow up smaller auto manufacturers.

As for Nissan and Honda, Ghosn termed the merger talks a “desperate move.”

“It’s not a pragmatic deal because frankly, the synergies between the two companies are difficult to find,” he said in the videotaped interview. “There is practically no complementarity between the two companies. They are in the same markets. They have the same products. The brands are very, very similar. At the end of the day they are trying to marry the short-term problems of Nissan, and the long-term vision of Honda.” He said that he believes Honda is being pushed into a possible merger by the Japanese government’s Ministry of Economy, Trade, and Industry.

In a separate press conference held today, Ghosn doubled down. “If this merger takes place,” he said, “personally I don’t think it’s going to be successful.” The companies are “surrendering in a certain way, in panic mode, by saying, ‘Please help us,’” Ghosn said.

All this must be taken with a grain of salt, as Ghosn, 70, definitely has an axe to grind. You’ll recall that the former CEO and chairman of the Renault-Nissan-Mitsubishi group was arrested and charged with financial crimes in Japan in 2018, and jumped his $14 million bail and fled the country in December of 2019.

He escaped Lebanon hidden in a three-foot musical equipment case on a private jet in December of 2019. Last year Ghosn filed a $1 billion lawsuit against Nissan for multiple charges, including spreading “misinformation” about him. The suit is pending.