Honda and Nissan are teaming up once again, despite having called off their merger plans just a few months ago. This time, the two companies are preparing to collaborate on developing vehicles and powertrains for the U.S. market.

Nissan’s new CEO, Ivan Espinosa, emphasized that this partnership is not aimed at a merger but is meant to be a flexible collaboration. “We’re discussing how we can work together in the U.S.,” he said, noting that joint product development and shared powertrain projects are among the options. He added that the talks have been positive, with teams from both sides — including top management — meeting regularly. However, he made it clear that “we are not discussing a merger or any capital ties.”

The U.S. market remains highly competitive, especially after the U.S. government raised tariffs on Japanese car imports. Although the rate dropped from 27.5% to 15% under a new trade agreement, it is still far higher than pre–trade war levels. Nissan expects the new tariffs to cut about ¥275 billion from its profits, while Honda anticipates a hit of around ¥385 billion.

Pooling resources could help both automakers stay competitive at a time when the U.S. market is cooling toward pure EVs and Chinese brands like BYD are expanding aggressively. Espinosa noted, “Honda and Nissan both have strong manufacturing, supply networks, and engineering teams in the U.S., giving us many options to work together.”

The two companies already signed a technology partnership in 2024, but this new round of discussions may lead to deeper collaboration, possibly including co-developed platforms or shared powertrains manufactured in the U.S. While he didn’t specifically mention the possibility of Nissan producing vehicles in Honda’s North American plants, it remains one of the potential options.

Meanwhile, Nissan continues to push its “Re:Nissan” restructuring plan, cutting 20,000 jobs and reducing its global plant count from 17 to 10 by 2028, despite reporting a loss of ¥221.9 billion earlier this year.

Espinosa reaffirmed the company’s open stance: “The world is changing very fast. We are open to any form of collaboration as long as it brings value to Nissan and its shareholders.”

Source: Carscoops