Honda asks Nissan to maximize profit before team-up

It looks like the impending alliance between Honda and Nissan, which the media had been talking about a lot over the past two months, is at risk of falling through.

Apparently, one of the requirements posed by Honda to Nissan was to demonstrate a steady profit growth. Shortly afterwards, Nissan published a performance report for the fiscal Q1 2024 that revealed a dramatic 94% fall in net profit, from $2.02 billion down to $131 million.

If Nissan is serious about the deal, it will now have to earn at least 400 billion Japanese Yen ($2.6 billion) until August 2026. Whether it has what it takes to reverse a downward trend as bad as this remains to be seen.