Nissan’s search for a deal with Honda indicates that the former is in “panic mode,” according to Carlos Ghosn, former president of the struggling Japanese automaker.
“It’s a desperate move,” said Ghosn on Friday (20) at Bloomberg Television. “It’s not a pragmatic deal because, frankly, synergies between the two companies are hard to find.”
Honda confirmed this week that it is considering several options, including a merger, equity partnership or creating a holding company with Nissan. While Hon Hai Precision Industry has also shown interest in Nissan, the Taiwanese iPhone maker known as Foxconn has put its will in stand-byinformed the Bloomberg News on Friday.
Nissan and Honda operate in the same markets with similar brands and products, Ghosn said, raising doubts about the merits of combining the two. He believes Japan’s Ministry of Economy, Trade and Industry pressured Honda to move forward with a deal.
“They’re trying to figure out something that can bring together Nissan’s short-term problems and Honda’s long-term vision,” Ghosn said. While there is no “industrial logic” to a deal, “there comes a time when you have to choose between performance and control.”
Ghosn, 70, has lived in Beirut since his daring escape from Japan five years ago. While out on bail facing charges of financial misconduct, he hired a rescue team to smuggle him onto a private plane inside a box of musical equipment and flew to Lebanon, which rarely extradites its citizens.
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Nissan and Ghosn continue to wage legal battles against each other more than six years after executives at the automaker organized his arrest and dismissal from the company. The manufacturer alleged that its former president failed to correctly report his income and misappropriated company assets for personal gain. Ghosn denied the allegations and accused Nissan of damaging his finances and reputation.
Ghosn said Friday he understands why Foxconn — which is in the midst of a years-long effort to enter the electric car market — would be interested in buying an automaker on the cheap.
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“I can understand that a company like Foxconn — run by very serious and realistic management — is going to say, ‘You know, instead of investing to make our own electric car, let’s buy an automaker,’” Ghosn said. “They won’t be the only ones trying to do this.”
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