Nissan would be the sufferer of cost-cutting “carnage” if it combines forces with Japanese peer Honda, former Nissan CEO Carlos Ghosn informed CNBC on Tuesday.

“I feel, with none doubt, Honda goes to be within the driver’s seat, which could be very unhappy to see after having led Nissan for 19 years [and] introduced Nissan to the forefront of the business, to see that they will be the sufferer of a carnage, as a result of there’s whole duplication between Nissan and Honda,” he informed CNBC’s “Squawk Field Europe.”

Ghosn, who as soon as led three automakers as a part of the Nissan-Renault-Mitsubishi alliance, has been residing in Lebanon after being arrested in Japan in November 2018 and fleeing trial on expenses of economic crimes. He denies misconduct.

“There may be virtually no complementarity right here, which implies, in the event that they wish to make synergy it’s going to be by way of possibly value discount, duplication of plan, duplication of know-how, and we all know precisely who’s going to pay the value of it. It will be the minor accomplice, and it will be Nissan,” Ghosn mentioned.

Nissan had better complementarities with France’s Renault, Ghosn estimated, referencing a long-standing partnership that has been largely unwound.

Hypothesis a few potential Honda and Nissan merger started earlier this month, and the 2 corporations confirmed the official begin of talks over a enterprise integration throughout a information convention on Monday. Beneath present proposals, a holding firm would act because the father or mother of each companies and be listed on the Tokyo Inventory Trade, with Honda — which has a market capitalization round 4 occasions that of Nissan — nominating most board members of the brand new entity. Nissan’s strategic accomplice Mitsubishi can also be engaged in talks over becoming a member of the group.

A $54 billion Nissan-Honda group would leapfrog South Korea’s Hyundai to develop into the world’s third-largest automaker by automobile gross sales, behind Japan’s Toyota and Germany’s Volkswagen. The built-in group would additionally characterize a landmark in automotive business consolidation, which has been lengthy anticipated in each Japan and worldwide as companies wrestle to shoulder the event prices of electrical automobiles and autonomous driving know-how.

Executives at each Honda and Nissan on Monday burdened {that a} mixed firm would be capable to share the intelligence and assets essential to compete within the EV transition and ship economies of scale, boosting working revenue to a projected 3 trillion yen ($19.1 billion) in the long run.

Nissan is embarking on the bold merger whereas concurrently enterprise a deep restructure it introduced in November, which can scale back international manufacturing capability by a fifth and reduce 9,000 jobs.

Honda CEO Toshihiro Mibe on Monday acknowledged that some shareholders could really feel his firm could be supporting struggling Nissan as a part of the deal, however burdened that the enterprise integration talks will “not come to fruition” if the 2 automakers fail to face on their very own.

Ghosn nonetheless informed CNBC that the merger plan suggests “Nissan is in panic mode, searching for any person to avoid wasting them from the scenario, as a result of they’re unable to generate the answer by themselves.”

He expressed “excessive doubts” that the turnaround at Nissan will likely be profitable, with out offering particulars.

Kei Okamura, senior vp and portfolio supervisor at Neuberger Berman, echoed the sentiment that particulars of the merger plan nonetheless must be ironed out.

“For those who’re an investor you are going to be serious about the three to 5 earnings outlook. What was introduced [Monday] was the close to time period, so the timeline, and the long-term imaginative and prescient. The one subject is how is that this merged entity going to get there, and that is the place there are a number of uncertainties forward,” Okamura informed CNBC’s “Road Indicators Asia” on Tuesday.

“The post-merger integration goes to be completely important … until these corporations are capable of actually full combine themselves collectively by way of the individuals, the property and naturally the tradition, these offers have the potential to unwind, and we now have to think about that this deal could not occur if [Nissan] would not come by way of with its turnaround program,” Okamura added.

Nissan declined to touch upon this story past its assertion out on Monday. Honda didn’t instantly reply to a CNBC request for remark.