Honda And Nissan Are Planning Something Big For America

Honda and Nissan Considering Partnership in North America

A recent report suggests that Honda and Nissan are exploring a potential partnership to produce cars and powertrains in North America.

Key Points:

• Honda and Nissan are in talks to collaborate in the US market.
• Both companies have been negatively impacted by President Trump’s tariff strategy.
• The two automakers had previously considered a merger, but talks fell apart.

Honda and Nissan are once again considering a partnership, this time focusing on developing cars and powertrains for the US market. Nissan’s CEO, Ivan Espinosa, stated that the goal is not to pursue a merger, but to explore collaborative opportunities.

“We are talking about how we can collaborate in the US,” Espinosa said, hinting at joint product development and shared powertrain projects. The talks are described as “very constructive, very positive,” with teams from both companies meeting regularly.

The motivation behind this potential partnership is largely driven by the need to navigate the challenging US market, particularly after the imposition of tariffs on Japanese car imports. The current tariff rate of 15% is significantly higher than the pre-trade-war level of 2.5%. Nissan expects to lose around $1.8 billion due to these tariffs, while Honda is bracing for a $2.54 billion hit (¥385 billion, though the original $54.2 billion is mentioned, this appears to be due to a conversion rate difference and is likely to be a typo).

By pooling their resources, Honda and Nissan can improve their competitiveness in the US market, which is seeing a slowdown in demand for pure EVs and increased competition from Chinese automakers like BYD.

Potential Scope of the Partnership

The partnership could extend beyond software development to include co-developed platforms or shared drivetrains built in North America. Espinosa mentioned that both companies have a strong presence in the US, with established manufacturing, supply networks, and engineering capabilities.

While Nissan is undergoing its “Re:Nissan” turnaround plan, cutting 20,000 jobs and reducing its global plant count from 17 to 10 by 2028, Espinosa remains open to collaborations that bring value to Nissan and its shareholders.

The potential partnership between Honda and Nissan is an interesting development in the ever-changing automotive landscape, and it will be worth monitoring how this collaboration unfolds.