TOKYO, Feb 05 (News On Japan) –
Honda has proposed making Nissan a subsidiary as a part of ongoing discussions on a possible enterprise integration, in accordance with sources.
Honda President Toshihiro Mibe commented on the matter, stating, “Nissan is working hard, and we are observing.”
The two automakers introduced in December final 12 months that they’d discover forming a holding firm, below which each companies would function as subsidiaries. They had deliberate to determine on a route by mid-February.
However, sources point out that Honda has urged another plan, during which it will purchase Nissan’s shares and switch it right into a subsidiary moderately than establishing a holding firm. Honda is believed to be pursuing this strategy to boost operational effectivity.
Despite this, robust opposition has emerged inside Nissan, with many voicing issues that “a subsidiary structure is completely unacceptable,” casting doubt on whether or not the plan will materialize.
Source: TBS