Honda and Nissan, longtime potential dance partners, are again considering getting closer. A few months after abandoning the idea of a merger, the Japanese automakers are back at the table to discuss a possible partnership that would seem them jointly develop vehicles and powertrains for the American – and by extension, the North American - market.
Nikkei Asia reports that new Nissan CEO Ivan Espinosa confirmed that active discussions are underway. The objective is not to revive a corporate marriage project, but rather to explore flexible and targeted collaborations.
"We are discussing how we can collaborate in the United States," explained Espinosa, specifying that joint development of products and powertrains is among the options being evaluated. He added that the meetings between the teams — including senior management — are "constructive" and "positive."
Espinosa, installed as CEO since April, nevertheless ruled out any idea of a merger or cross-shareholding: “We are not talking about integration or capital ties.”
U.S. tariffs: a major pressure point
The American market remains difficult, especially since Washington raised the tariffs imposed on Japanese vehicles. Those were recently lowered to 15 percent, but they remain well above the pre-trade-war rate of 2.5 percent.
Nissan estimates the tariffs will cause profits to fall by 275 billion yen ($1.8B USD) this fiscal year. At Honda, the estimated impact is 385 billion yen ($2.5B USD).
As buyer enthusiasm for all-electric vehicles continues to stutter, and in a sector where Chinese manufacturers like BYD are gaining ground with aggressive pricing, pooling resources becomes a logical, even vital strategy.
A partnership that could go beyond software
Honda and Nissan already signed an agreement in 2024 on vehicle intelligence and electrification technologies. The new wave of discussions could, however, open the door to much more ambitious projects.
Among the avenues mentioned are co-development of platforms, sharing of powertrains and joint production in North America. Espinosa did not confirm the possibility of producing Nissan vehicles in Honda's North American plants, but the scenario remains plausible.
Meanwhile, Nissan is continuing its recovery plan, which includes eliminating 20,000 jobs and reducing its number of global plants from 17 to 10 by 2028. Despite a loss of 221.9 billion yen ($1.5B USD) earlier this year, Ivan Espinosa insists the brand remains agile.