• Honda is reportedly ready to resume the merger talks with Nissan.
• According to a report from the Financial Times, Honda wants Nissan’s CEO to step down.
• During the talks that failed last week, Honda’s CEO was reportedly frustrated with Nissan’s slow pace and stubbornness.

The merger between Honda and Nissan would have created the world’s fourth-largest automaker. However, the negotiations fell apart last week, partly because Nissan believed it should be seen as an equal rights member of the tie-up, while Honda demanded Nissan become a fully owned subsidiary. 

In other words, Honda wanted the upper hand, and for good reason, with Nissan’s financials looking increasingly dire. But the $60 billion merger discussions aren’t completely dead.

According to a report from the Financial Times quoting people with knowledge of the matter, Honda is willing to resume takeover talks if Nissan’s chief executive officer Makoto Uchida resigns. That’s a big ask, and it puts Nissan in a tough spot.

Nissan’s head honcho said he wants to stay at the helm until next year but board members and partner Renault are pushing him to leave his seat in the following months. According to a person familiar with the talks quoted by the FT, Nissan’s board of directors has already begun informal discussions over the timing of Uchida’s exit.

“I do regret it ended this way,” Honda president Toshihiro Mibe said after the merger talks broke down last week. That said, the takeover bid could be renewed if Uchida steps down, according to people familiar with Mibe’s thinking, the FT reported.

Nissan’s dire situation stems from its lack of hybrid models in the United States, competition from local rivals in China and piling interest rates from loans. Last year, a senior official close to Nissan said the company had “12 or 14 months to survive.” As a result, the Japanese automaker had to come up with a survival plan, especially considering Renault–which owns 36% of Nissan–is looking to sell its stake.

Nissan wants to cut 9,000 jobs and reduce its global manufacturing capacity by 20% to try and turn things around. The company said it would provide an update on the program by March 13.

Nissan declined to comment to Reuters on the FT report and Honda said the report was not something it had announced.