[News] Nissan Reportedly Planning Job Cuts in Japan Amid Merger Talks with Honda

According to a report from MoneyDJ, citing Japanese media outlet Yomiuri Shimbun, Japanese auto giant Nissan Motor plans to implement layoffs in Japan. The company is set to halt production of a commercial vehicle model at its Shonan plant in Kanagawa Prefecture, leading to hundreds of job cuts.

The report highlights that Nissan had previously announced a global workforce reduction plan of 9,000 employees in November 2024, and this marks the first time the company has disclosed specific layoff measures within Japan.

Nissan has reportedly informed its suppliers that the Shonan plant will cease production of the “AD” commercial vehicle in November this year. The decision comes amid sluggish sales, attributed to increasing competitive pressure from rivals like Toyota, as indicated by the report.

The Shonan plant, which has an annual production capacity of 150,000 units, currently manufactures the AD and NV200 models. The report states that Nissan is also reportedly considering scaling down production of the NV200.

Nissan’s Financial Woes and Their Impact on Business Integration Negotiations with Honda

Nissan’s ongoing financial struggles are seen as a factor that could influence its business integration talks with Honda. According to the report, Nissan and Honda announced on December 23, 2024, that they had signed a basic agreement to begin discussions and evaluations regarding a potential merger.

The two companies aim to reach a final merger agreement by June 2025 and plan to establish a joint holding company by August 2026. This holding company would oversee both Nissan and Honda as wholly-owned subsidiaries and is scheduled to list on the Tokyo Stock Exchange Prime Market in August 2026. At that time, both Nissan and Honda would be delisted from the exchange.

However, the negotiations face several challenges. The report, citing Kyodo News, notes that Honda has requested Nissan to repurchase shares held by Renault, the French automaker, to prevent those shares from being acquired by third parties, which could potentially disrupt the merger discussions.

The report further highlights that Taiwan’s Foxconn has reportedly approached Renault with an interest in acquiring its Nissan shares. Foxconn’s potential involvement has become another key factor in the ongoing merger negotiations.

Citing Jiji Press, the report states that Honda and Nissan’s planned joint holding company is expected to receive the majority of its capital contribution from Honda, given its significantly higher market capitalization compared to Nissan.

Meanwhile, Nissan’s financial difficulties pose a significant risk to the integration, as highlighted in the report. The complex interplay of factors—including Nissan’s weak business performance, Renault’s stake in the company, and potential third-party involvement such as Foxconn—further adds layers of uncertainty to the merger process.

Read more

• [News] Honda Reportedly Urges Nissan to Acquire Renault Stake to Prevent Third-Party Influence in Merger
• [News] Honda-Nissan Merger Talks Reportedly Spurred by Concerns over Foxconn’s Potential Acquisition

(Photo credit: Nissan)