Uchida had been one of the strongest advocates within Nissan for a deal with Honda. However, relations between Uchida and his counterpart Toshihiro Mibe deteriorated as Honda became frustrated with the speed of Nissan’s restructuring and the depth of its financial troubles.

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.

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.