The proposed merger of Nissan and Honda was a surprise to many when it was announced at the end of 2024, though it soon became clear that the former brand was in dire need of help.
In the end, the potential deal fell apart: Honda wanted to be the bigger brand, Nissan wasn’t willing to let that happen. After it failed to proceed, Nissan’s CEO departed, and now its new head is trying to keep the brand alive.
However, in a recent report by Nikkei Asia, Nissan’s current CEO Ivan Espinosa said his car company is continuing talks with Honda, with the lucrative US market a key component of the new approach.
“We are talking about how we can collaborate in the US,” Espinosa said.
“Is there any opportunity for joint product development or for powertrain development? These are the topics that we are discussing.”
According to Nikkei Asia, Espinosa said the most recent talks with Honda aren’t related to the tariffs the US has placed on Japanese car imports (now 15 per cent), however there’s no doubt both brands would benefit from minimising the impact of the tax.
Espinosa wouldn’t say if Honda could build its cars at Nissan’s US factories, but he added, “we are open to anything.”
“The good thing is, both companies have very good coverage in the U.S. in terms of manufacturing, supply network and also engineering capabilities. So we have a lot of, I would say, options to explore. We are not discussing integration or capital tie-ups.”
Currently, Honda has nine models on sale in the US, six of which are built locally. Nissan meanwhile sells 12 vehicles in the nation, though just five are produced in the US.
As previously reported, Nissan earlier this year announced a net loss of ¥670.9 billion (A$7.1 billion) throughout the 2024 Japanese financial year (April 2024 to March 2025), a staggering loss of ¥1.097 trillion (A$11.5 billion) compared to the financial year prior.
Earlier this month Nissan sold its headquarters in Yokohama, and has entered into a 20-year leaseback agreement. On announcing the sale, Nissan said it made a quarterly operating profit of ¥51.5 billion ($511 million) between July and September, its best quarter since the end of the 2023 financial year.
Nissan expects to break even in operating profits this year, excluding the impact of the US tariffs, which are estimated to lead to an operating loss of ¥275 billion ($2.73 billion).
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