Nissan Honda US Collaboration: CEO Confirms New Talks for US Market

Nissan Honda US Collaboration: New Talks Begin After Scrapped Merger

A Nissan Honda US collaboration is being explored once again, this time focusing on jointly developing products and powertrains specifically for the American market. Earlier this year, Nissan and Honda cut short what could have been one of the more unexpected alliances in the industry. Their high-profile merger talks ended quietly, with both companies reportedly unable to settle on restructuring plans and long-term integration goals. For a while, that seemed to be the end of any deeper relationship.

But things change quickly when tariffs get involved. Nissan’s new chief executive, Ivan Espinosa, now suggests that while the full merger is off the table, the appetite for collaboration isn’t gone.

Talks Resume, Focused on US Market

In an interview with Nikkei Asia, Espinosa confirmed that Nissan and Honda have been meeting regularly to discuss where US-based collaboration makes sense. “Is there any opportunity for joint product development or for powertrain development? These are the topics that we are discussing,” he said.

He also noted that the discussions are “very constructive, very positive.” Instead of blending corporate structures, both brands are revisiting the idea of teaming up on something more practical.

The Tariff Pressure Cooker

Espinosa stressed that the talks aren’t directly tied to tariff pressure, but both companies are clearly feeling the financial strain. The US recently reduced tariffs on Japan-built passenger vehicles to 15 percent. While this is far better than the previous 27.5 percent, it is still much higher than the long-standing 2.5 percent rate that the industry had relied on for decades.

The financial damage is significant. Nissan expects tariff impacts of 275 billion yen this fiscal year, while Honda estimates 385 billion yen in losses tied to the same policy shift.

Nissan Keeping All Options Open

Both automakers already have substantial US manufacturing footprints, which opens the possibility of shared production lines or joint component sourcing to mitigate these new costs.

Espinosa didn’t confirm any specific plans but hinted that Nissan isn’t drawing any hard boundaries: “We are open to anything.” What he did definitively rule out, however, was another attempt at a capital tie-up or merger.

Toyota’s Multi-Billion Dollar Counter-Strategy

While the Nissan Honda US collaboration is one way to soften tariff pressure, Toyota is taking a more direct, independent approach. The company has just opened its massive, nearly $14 billion battery plant in Liberty, North Carolina.

This facility, Toyota’s first battery production site outside Japan, is a key part of its long-term US supply chain. The investment is part of Toyota’s aggressive push to localize, locking in local capacity, stabilizing costs, and giving Toyota more control over its North American strategy.

Also Read – Why the Subaru EV Delay is Happening: Hybrids and Tariffs