Akio Toyoda “Disappointed” by Failed Nissan-Honda Merger

Toyota Motor Corp. president and chairman Akio Toyoda presenting the GR Supra sports coupe some time back. The exec recently said he was disappointed by the failed Nissan-Honda merger talks.

Toyota Motor Corp. (Toyota) chairman Akio Toyoda reportedly said he was “disappointed” over the failed merger talks between rivals Nissan and Honda. In a recent interview with global online portal Automotive News, the exec shared his views on the matter.

“At the press conference that followed, I was quite disappointed hearing what they talked about. Because they didn’t talk at all about the products,” said 68-year-old Toyoda. He was of course referring to the first press conference held on Dec 23, 2024 where the proposed merger was first announced by both Nissan and Honda, with Mitsubishi also present then.

Though the memorandum of understanding (MOU) revealed then did indicate plans to standardise vehicle platforms and share models between the two automakers, specific details regarding either were not provided. Instead, the MOU was headlined by buzzwords like “synergies” and “business integration”, amongst others.

68-year-old Toyoda also casted serious doubts of the merger's benefits had it gone through. He also stressed that volume is both a gift and a curse at the same time too.

Additionally, Toyoda had also casted serious doubts on the benefits of the merger should it have gone through.

“Do you know an example of where there was a consolidation of companies, and they’ve made a big success for the competitiveness? Just having volume doesn’t necessarily mean that you’re strong. Short term, you may see some positive impacts. But long term, it can be quite difficult to come to a state where everyone says they’re glad they’ve combined,” argues Toyoda.

Evidently, Toyoda points out that volume can be both a blessing and a curse. No doubt, this wisdom stems from experience – Toyota remained as the world’s largest automaker for the fifth consecutive year this year, having shifted 10,821,480 vehicles worldwide collectively through its main Toyota banner, as well as its Lexus, Daihatsu and Hino subsidiaries.

On top of which, Toyota also has strategic alliances with several domestic automakers – it’s most recent being the joint powertrain development effort with Mazda and Subaru. Let’s also not forget that Toyota owns shares in some of its domestic rivals too. It includes a 20% stake in Subaru, a 5.1% stake in Mazda, as well as 4.9% stakes in both Suzuki and Isuzu.

Following a leadership change, Nissan also revealed a bold new 'revival plan' centred on a slew of new and updated models.

Besides which, the other key issue that led to the collapsed merger talks arguably stemmed from Honda’s desire to position Nissan as a subsidiary instead of an equal partner in this merger. Needless to say, this loss of autonomy did not sit well with Nissan’s top leadership led by former CEO Makoto Uchida then.

Uchida has since been replaced by new CEO Ivan Espinosa who then presented the ailing automaker’s bold “revival plan” featuring a slew of new and updated models. However, how this new plan fares out still remains to be seen over time.