Nissan and Honda Discuss Joint Vehicle Development in the US

Nissan President Ivan Espinosa revealed in an interview with Nikkei on November 13 that they are discussing joint vehicle development with Honda in the United States. They also intend to collaborate on the joint development of powertrains (drive systems), a core component, in areas crucial to competitiveness. Facing increasingly challenging market conditions in the US, including high tariffs, the two companies will work together to ensure their survival.

Espinoza stated, “We are discussing the possibility of joint development of vehicles and powertrains with Honda in the United States.” He did not specify whether it would be a pure electric vehicle (EV) or a hybrid vehicle (HV). The powertrain is a core component of the drive motor and engine.

Honda commented on the joint vehicle development, saying, “We are discussing various possibilities for cooperation, but nothing has been finalized yet.”

The two companies initiated comprehensive business cooperation in August 2024, including on the development of pure electric vehicles. They announced merger talks in December, but these talks broke down in February 2025. To rebuild their relationship, they are discussing cooperation.

The consideration of cooperation between the two companies in the US stems from a sense of crisis. Nissan failed to launch its popular HV model in the North American market in a timely manner, resulting in sluggish sales. The business environment is becoming increasingly challenging due to tariffs imposed by the Trump administration. Joint development with Honda would allow them to enhance their product competitiveness, primarily in the US market.

Honda’s automotive business also incurred losses from April to September 2025. In North America, increased incentives for pure electric vehicle sales have led to decreased profitability. The immediate priority is to improve cost competitiveness, focusing on electric vehicles.

Espinoza emphasized that “both companies have extensive production systems and supply chains in the US, and strong development capabilities.” He believes that “in terms of results, it is possible to mitigate the impact of tariffs,” and also stated that “there is room for cooperation in other markets.”

Several sources revealed that Nissan has been considering producing pickup trucks for Honda at its underutilized US plants. President Espinosa stated that “various options are being considered,” without providing a definitive answer.

Nissan and Honda previously initiated a business merger, but failed to build trust, leading to a breakdown in negotiations. Espinosa stated that at this stage, “there are no discussions regarding mergers or capital cooperation.” If the cooperation yields better results, both parties may reconsider capital cooperation.

Furthermore, whether Nissan will maintain its capital cooperation with Renault of France has become a focus. In 2023, the two parties agreed to reassess their capital relationship, with each contributing 15%. In 2025, they decided to reduce their mutual contribution obligations to 10%.

Espinoza pointed out that it is also possible to change this “depending on whether long-term goals are aligned.” Regarding the relationship with Mitsubishi Motors, in which Nissan has invested, she stated, “There is no reason to change it,” indicating a policy of continued maintenance.

To achieve operational restructuring, Nissan is proceeding with an integration centered on laying off 20,000 employees globally and eliminating seven factories. Espinosa stated that “factory reductions will proceed as planned,” expressing a negative attitude towards further layoffs.