Carlos Ghosn, the former Nissan chairman, has proposed a merger plan with Honda that he claims is necessary to combat rising costs and intensifying competition in the global automotive market. The proposal outlines a potential partnership between the two Japanese companies, which would see them combine their resources to improve efficiency and reduce expenses.

Ghosn's plan, which was revealed last week, suggests that the merged entity would have an annual turnover of over $200 billion and operate more than 100 manufacturing plants worldwide. This massive scale would enable the company to negotiate better deals with suppliers and distributors, while also allowing it to invest in new technologies and products.

The proposal is seen as a desperate move by Ghosn, who has been out of the spotlight since his arrest in 2018 on charges of financial misconduct. Despite his efforts to regain control of Nissan, he was ultimately removed from his position as chairman in 2020.

Ghosn's plan for a merger with Honda would likely face significant opposition from various stakeholders, including shareholders and regulatory bodies. The Japanese government has been critical of Ghosn's proposals, with some lawmakers calling them "unrealistic" and "lacking credibility."

One of the main concerns surrounding Ghosn's proposal is its potential impact on job losses. If the merger were to go ahead, it could lead to significant redundancies in both Nissan and Honda's workforce. This would be a major concern for employees who have already seen their jobs cut during recent restructuring efforts.

The proposed merger also raises questions about the future of car ownership in Japan. With Ghosn's plan, the two companies would likely focus on electrification and autonomous driving technologies. However, this could lead to a shift away from traditional internal combustion engines, which has significant implications for the country's automotive industry.

Another issue with Ghosn's proposal is its lack of clarity on how the merger would be structured. The Japanese government has called for more information about the proposed deal, including details on how ownership and control would be shared between Nissan and Honda. This lack of transparency has raised concerns among investors and regulatory bodies.

Despite these challenges, Ghosn remains confident that his proposal can succeed. He believes that a merger with Honda is necessary to ensure the long-term survival of both companies in an increasingly competitive market.

In a statement last week, Ghosn argued that "the world is changing fast" and that companies need to adapt quickly to stay ahead. He claimed that a merger between Nissan and Honda would enable them to "take advantage of new technologies and business models" and become more competitive.

While Ghosn's proposal may be seen as a last-ditch effort, it highlights the growing challenges facing the global automotive industry. As companies continue to grapple with issues such as electrification and autonomous driving, it is clear that partnerships and mergers will play an increasingly important role in ensuring their long-term survival.

Ultimately, the future of Ghosn's proposal remains uncertain. However, one thing is clear: the automotive industry is undergoing significant changes, and companies must be prepared to adapt quickly to stay ahead.

• combat rising costs
• Ghosn
• Ghosn proposal
• Ghosn plan
• Honda