Nissan President Ivan Espinosa being interviewed (November 13th, Nishi-ku, Yokohama)

Nissan President Espinosa said, “We are discussing the possibility of jointly developing vehicles and powertrains with Honda in the United States.” He did not mention specific models such as EVs or HVs. In the United States, the market environment, including high tariffs, is becoming increasingly severe. The two companies will join hands to seek survival…

On November 13th, Nissan President Ivan Espinosa revealed in an interview with the Nikkei (Chinese version: Nikkei Chinese Net) that Nissan is discussing vehicle development cooperation with Honda in the United States. They also plan to promote the joint development of powertrains (driving devices), which are core components, and cooperate in the automotive development field that determines competitiveness. In the United States, the market environment, including high tariffs, is becoming increasingly severe. The two companies will join hands to seek survival.

Espinosa said, “We are discussing the possibility of jointly developing vehicles and powertrains with Honda in the United States.” He did not mention specific models such as battery electric vehicles (EVs) or hybrid vehicles (HVs). Powertrains are core components of drive motors and engines.

Honda commented on the joint vehicle development, saying, “We are discussing various cooperation possibilities, but no definite decisions have been made yet.”

The two companies launched comprehensive business cooperation in battery electric vehicle development in August 2024. In December, they announced the start of management merger consultations, but the talks broke down in February 2025. To rebuild their relationship, the two sides have been in consultations regarding cooperation.

Behind the two companies’ consideration of cooperation in the United States is a sense of crisis. Nissan failed to timely launch popular HVs in the North American market, resulting in sluggish sales. Due to the tariff hikes by the Trump administration in the United States, the business environment has become increasingly severe. If the joint development with Honda is realized, it will be possible to enhance product competitiveness centered on the United States, the major market.

Honda’s automotive business also suffered losses from April to September 2025. In North America, the profitability declined as bonuses were increased for battery electric vehicle sales. The top priority is to improve cost competitiveness, especially in the field of electric vehicles.

Espinosa emphasized, “Both companies have extensive production systems and supply chain coverage in the United States, as well as strong development capabilities.” He believes that “it may alleviate the impact of tariffs as a result” and also said that “there is also room for cooperation in other markets.”

Multiple sources revealed that Nissan has been considering producing pickups for Honda at its U.S. factories with low operating rates. President Espinosa said, “We are considering various options” without giving a clear response.

Nissan and Honda previously initiated management merger talks but failed to build trust, leading to the breakdown of the negotiations. Espinosa said that at this stage, “there are no discussions about mergers or capital cooperation.” If the cooperation achieves good results, the two sides may reconsider capital cooperation and other forms of cooperation.

In addition, whether Nissan will maintain its capital cooperation with Renault of France has also become a focus. In 2023, the two sides agreed to re – evaluate their capital relationship and hold a 15% stake in each other. In 2025, they decided to reduce the mutual shareholding obligation to 10%.

Espinosa pointed out that it may also be changed to “determined based on whether the long – term goals are consistent.” Regarding the relationship with Mitsubishi Motors, in which Nissan has an investment, he said, “There is no reason for change,” indicating the policy of continued maintenance.

To achieve business reconstruction, Nissan is promoting an integration centered on laying off 20,000 employees globally and closing seven factories. Espinosa said, “The factory closures will proceed as planned” and expressed a negative attitude towards further layoffs.

This article is from the WeChat official account “Nikkei Chinese Net” (ID: rijingzhongwenwang). Author: Nikkei Chinese Net. Republished by 36Kr with permission.