Potential Honda Deal Signals "Panic Mode" for Nissan, Says Exiled Former President Ghosn

Carlos Ghosn, former president of Nissan Motor Co., commented on the potential agreement between Nissan and Honda Motor Co., labeling it a "desperate move." In a statement made on Bloomberg Television on Friday, Ghosn suggested that Nissan is in "panic mode."

Expressing doubts about the feasibility of the agreement, Ghosn noted that determining synergies between the two automakers is difficult. He stated that both companies operate in the same markets and offer similar brands and products, believing that this does not support the rationale for a merger.

Honda confirmed earlier this week that it is exploring various options, including a merger, capital partnership, or the establishment of a holding company with Nissan. Ghosn suggested that pressure for an agreement may come from Japan's Ministry of Economy, Trade, and Industry.

Meanwhile, Foxconn, known as Hon Hai Precision Industry Co., the Taiwan-based manufacturer of iPhones, has also shown interest in Nissan. However, according to a report released by Bloomberg News on Friday, Foxconn has decided to temporarily suspend its initiative.

Ghosn also shared his thoughts on why Foxconn might be interested in acquiring an automotive company. He explained that, as Foxconn tries to enter the electric vehicle market, it might be more practical to buy an existing car company rather than invest in creating its own electric vehicle.

The former president is currently embroiled in a legal battle that began over six years ago when executives within Nissan were arrested and removed from the company. Nissan alleges that Ghosn underreported his income and misused company assets for personal gain. Ghosn denies these allegations and accuses Nissan of damaging his finances and reputation.