The long-debated merger between Japan’s second and third-largest automakers, Honda Motor and Nissan Motor, may be back on the table—but with a key condition. According to the Financial Times, Honda is willing to restart talks only if Nissan’s CEO, Makoto Uchida, steps down. If successful, the merger could create a $60 billion automotive powerhouse.

Nissan has struggled in recent years, facing declining earnings due to a lack of competitive hybrid models in the U.S. and rising pressure from Chinese automakers. Uchida, who took the helm in 2019, has faced mounting criticism for failing to steer the company toward recovery and boosting sales. His leadership has been under scrutiny, not just internally but also by Nissan’s key alliance partner, Renault.

Merger talks between Honda and Nissan previously collapsed last week due to resistance from Nissan, which refused to become a subsidiary of Honda. However, the latest reports suggest that Honda is open to reviving discussions—provided a new leader with stronger internal support takes over at Nissan. Honda CEO Toshihiro Mibe has made it clear that his company has no plans for a hostile takeover, signaling a preference for a cooperative approach.

Meanwhile, Nissan is undergoing significant restructuring efforts in a bid to regain financial stability. The company has announced a major workforce reduction, cutting 9,000 jobs, and plans to scale down its global manufacturing capacity by 20%. Despite these moves, Uchida has expressed his intention to remain in his position until 2026, even as pressure from Nissan’s board and Renault to step aside continues to mount.

The potential merger would have significant implications for Japan’s automotive industry, bringing together two of its most recognized brands to compete more effectively in the global market. However, with leadership disputes standing in the way, the future of the deal remains uncertain. Whether Nissan’s board will push Uchida out to facilitate negotiations—or whether the CEO will defy the pressure—will be the key question in the coming weeks.