Nissan faces main price cuts in potential Honda merger, says ex-CEO Ghosn

On Tuesday, Carlos Ghosn, the previous CEO of Nissan (OTC:NSANY), expressed considerations on CNBC concerning the potential detrimental impacts on Nissan ought to the corporate merge with Honda (NYSE:HMC). Ghosn, who has a historical past of main Nissan and forming the Nissan-Renault-Mitsubishi alliance, highlighted the dangers of what he referred to as a “carnage” on account of vital overlaps between the 2 Japanese automakers.

Throughout his look on CNBC’s “Squawk Field Europe,” Ghosn outlined that Honda would seemingly dominate within the partnership, which he finds regrettable given his position in bringing Nissan to prominence over his 19-year tenure. He identified that the 2 corporations have a “complete duplication” of operations, which might result in extreme cost-cutting measures.

Ghosn additionally talked about that the potential merger lacks complementarity, suggesting that any synergies would come from price reductions, together with chopping duplicated plans and applied sciences. He warned that Nissan would bear the brunt of those cuts because the “minor accomplice” within the association.

The previous CEO in contrast the potential Nissan-Honda merger unfavorably to Nissan’s earlier alliance with Renault (EPA:RENA). Based on Ghosn, Nissan had better complementarity with the French automaker, a partnership that has since been largely dissolved.

Carlos Ghosn has been residing in Lebanon after fleeing Japan in December 2019, the place he was below arrest on prices of monetary crimes, which he has constantly denied. His insights come from a place of expertise however are additionally formed by his controversial departure from the automotive world.

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