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The prospective merger is not only a concern for Nissan and Honda but also for Renault, Nissan's partner in their global alliance, which has a vested interest in the outcome of these discussions. The landscape is further complicated by Nissan's past experiences, particularly in the wake of the fallout from Carlos Ghosn's arrest in 2018. Since then, the company has struggled to maintain its competitive edge, especially amid increasing competition from global rivals, including China's growing presence in the electric vehicle sector.
At the heart of the negotiations lies the question of control. Nissan’s unwillingness to relinquish its authority to Honda is proving to be a major obstacle to what many once considered an inevitable merger.