CEO Makoto Uchida could very well fall on his sword—whether or not Nissan’s board is still interested in a tie-up with its larger domestic rival. Japanese carmaker Honda Motor is reportedly demanding Nissan jettison CEO Makoto Uchida as a condition for reopening acquisition talks that could create the world’s third-largest carmaker by vehicle sales.

Honda Motor will resume talks with Nissan Motor to form the world's fourth-biggest automaker provided Nissan CEO Makoto Uchida steps down, the Financial Times reported on Tuesday citing a person familiar with discussions.

The Japanese automotive sector is at a crossroads as Nissan faces a pivotal leadership shake-up that could reignite stalled merger talks with Honda. The collapse of discussions last week between Japan’s second and third-largest automakers left Nissan grappling with uncertainty.

Honda may be willing to restart negotiations that fell apart earlier this month, on the condition that Nissan CEO Makoto Uchida leaves the automaker, according to a Monday report from the Financial Times.

Honda Motor (HMC) could jump-start talks over a deal with fellow Japanese carmaker Nissan but only if its chief executive Makoto Uchida steps

Talks broke down because Honda wanted Nissan to use its hybrid system. Now Honda is willing to resume talks if Nissan's CEO, Makoto Uchida steps down.

Honda (NYSE:HMC) is ready to revive merger talks with Nissan (OTCPK:NSANY) if the latter's CEO Makoto Uchida resigns, the Financial Times reported, citing people with knowledge of the matter. Merger talks between the Japanese automakers fell through after Honda (NYSE:HMC) proposed that Nissan (OTCPK:NSANY) become a fully owned subsidiary,