Honda and Nissan Explore Vehicle Production Collaboration
TOKYO: Honda and Nissan are considering the possibility of manufacturing vehicles at each other’s factories as part of efforts to strengthen their partnership, and potentially merge, according to a report by Japan’s Kyodo news agency on Saturday.
As part of this collaboration, Honda may supply hybrid vehicles to Nissan, though the report did not specify its source.
A merger between Honda, Japan’s second-largest automaker, and Nissan, the third-largest, would create the world’s third-largest car group by sales, producing 7.4 million vehicles annually, following Toyota and Volkswagen.
The two companies entered into a strategic partnership in March to focus on electric vehicle development. However, Nissan has recently faced financial and strategic challenges.
In response to the report, a Honda spokesperson stated, “Nissan, Mitsubishi Motors, and we are exploring potential forms of cooperation, but nothing has been finalized yet.”
Nissan declined to comment, noting that the details in the report were not based on any official announcement. Nissan is also the top shareholder in Mitsubishi Motors.
Kyodo mentioned that Honda might utilize Nissan’s car factory in Britain, as Honda currently only operates engine and motorcycle manufacturing plants in Europe.
This development comes amid concerns about how potential protectionist trade policies under President-elect Donald Trump might impact manufacturing strategies.
