According to a report by Nikkei, Honda Motor Co. is considering a business partnership with Nissan Motor Co. This development comes just four months after merger talks between the two companies fell through, and as U.S. government tariff policies continue to create uncertainty for Japanese automakers.
At Honda's annual shareholders meeting on June 19, CEO Toshihiro Mibe was asked whether the company would reconsider a merger with Nissan. He replied, "We do not completely rule out the possibility, but it's not something we're pursuing at this time." However, Mibe confirmed that the two companies are in discussions about specific areas of collaboration. "We aim to maximize the benefits of working together and reclaim a leadership position in the industry," he said, without disclosing further details.
Previously, Nissan COO Ivan Espinosa also acknowledged the possibility of a partnership with Honda. "Given current market conditions, we're actively exploring opportunities in the U.S. market. Of course, Honda is one of the potential partners we're discussing with," Espinosa said. Mibe's latest remarks suggest that both executives are aligned in advancing collaboration efforts.
In March 2024, Honda and Nissan began exploring cooperation in electric vehicles and autonomous driving technologies. Mitsubishi Motors joined the discussions in August of the same year. By December, Honda and Nissan entered merger negotiations aimed at forming the world's third-largest automotive alliance. However, talks eventually broke down after Nissan rejected Honda's proposal to make it a subsidiary. Honda criticized Nissan for failing to make decisions on substantial restructuring, which in turn led to distrust from Nissan's side.
Recently, the negotiations appear to have restarted, with both sides expressing willingness to continue exploring a partnership. According to Nikkei, sources close to the talks say significant differences remain between the two companies, making the outcome uncertain. However, since April, signs of improvement in their relationship have emerged, with executives from both companies holding regular meetings.
Nikkei notes that changes in Nissan's leadership may have contributed to this shift. After the failed merger, Nissan appointed Ivan Espinosa to succeed Makoto Uchida as CEO. Under Espinosa's leadership, Nissan has taken a more decisive approach, announcing plans to close seven factories worldwide and cut 20,000 jobs. This renewed assertiveness has helped rebuild Honda's trust.
The two companies are also being pushed toward reconsidering collaboration by external pressures, particularly U.S. trade policy. Starting in April, the Trump administration imposed a 25% tariff on imported vehicles and extended similar tariffs to key components like engines in May. Honda projects a 70% drop in consolidated net profit for the fiscal year ending March 2026 due to the tariffs. Nissan estimates the tariffs could reduce its profits by as much as 450 billion yen (approximately $3.09 billion).
