Mitsubishi Motors is considering manufacturing vehicles in the United States together with major Japanese automakers Nissan Motor and Honda Motor, according to Mitsubishi President and CEO Takao Kato, as the company faces pressure from U.S. auto tariffs.
Kato told Nikkei in a recent interview that joint production is one possible form of collaboration with Nissan and Honda. Regarding the timing of a decision, he said, “We aim to make concrete progress before the announcement of our next medium-term plan,” which could come as early as spring.
Kato did not reveal which vehicle models or factories are being considered for joint production. In May, Mitsubishi and Nissan said they had begun exploring the possibility of jointly producing sport utility vehicles (SUVs) at Nissan’s U.S. plants.
Currently, Mitsubishi has no vehicle production plants in the U.S., and all models sold in the market are imported from Japan. This leaves vehicles like the Outlander and Eclipse Cross vulnerable to U.S. tariffs. Rising costs have pushed Mitsubishi’s North American business into a loss during the April–September period.
Mitsubishi’s U.S. sales reached 113,000 units in fiscal 2024, around 10% of Nissan or Honda’s volume. High labor and material costs make U.S. factory investments a heavy burden for Mitsubishi. Kato noted that “It is extremely difficult to continue our North American business on our own.”
Nissan operates two U.S. plants — Canton in Mississippi and Smyrna in Tennessee — both affected by declining sales, leading to low utilization rates and pressure on profitability. Honda, meanwhile, has five U.S. plants, all running near full capacity, leaving little room to expand production.
Last year, the three automakers together held more than 15% of the U.S. market, surpassing Toyota. Even producing a limited number of models jointly could bring significant cost savings.
Nissan and Honda are also considering joint vehicle development in North America. Regarding Mitsubishi’s participation, Kato said the company “would prefer to collaborate in the U.S. as well.”
Kato added that Mitsubishi is also discussing cooperation with Honda and Nissan outside the U.S. Nissan supplies Mitsubishi with minivans in the Philippines, while in Oceania, Mitsubishi manufactures pickup trucks for Nissan.
In August 2024, Mitsubishi joined talks with Nissan and Honda in pursuit of a three-way partnership. After Nissan and Honda’s merger discussions collapsed in February, the three companies resumed exploring collaborative opportunities.
Nissan, Mitsubishi’s largest shareholder, has drawn renewed attention as it works to turn around its own struggling business. President and CEO Ivan Espinosa has said Nissan has no plans to sell its stake at this time.
Kato concluded that “advancing collaboration talks comes first,” adding that the company will later consider whether deeper restructuring is necessary.
Source: Nikkei Asia
