Nissan May Build Honda Trucks in U.S. Plant as Tariff Pressure Mounts

Car and Driver

4 days ago

Honda and Nissan are reportedly talking about collaborating amid the U.S. tariff situation, per a report by Reuters via the Nikkei newspaper.
One option could see Nissan build body-on-frame Honda trucks at its underused factory in Canton, Mississippi.
Earlier this year, the two automakers failed to merge after talks broke down, but a Honda exec previously suggested they could team up on full-size vehicles.
Nissan is reportedly considering building pickup trucks for Honda at its plant in Canton, Mississippi, which isn't running at full capacity. Talk of the potential collaboration was first reported by Japan's financial newspaper, Nikkei, and picked up by Reuters; the sources of the original report were not mentioned.
The latest report comes after Honda and Nissan earlier this year ended an agreement that would have created the world's third-largest auto group. Despite the deal falling apart, the two automakers at the time agreed to collaborate on other projects. Now, the reported arrangement could benefit both Japanese companies amid the uncertain tariff situation.
Tomohiro Ohsumi
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According to Automotive News, which contributed to the Reuters report, someone with knowledge of the situation said that talk about Nissan building a body-on-frame truck for Honda is among multiple options that are under consideration. Honda currently sells the Ridgeline, a unibody truck built at the company's factory in Alabama, while Nissan builds the body-on-frame Frontier in Mississippi.
The reports suggest that Honda would design a Frontier-sized truck that would be built and developed by Nissan. And since Nissan has underutilized capacity in its plants, a deal like this would allow Honda to more quickly increase production of competitive models without having to invest a lot in development, while also providing a much-needed financial boost to ailing Nissan.
This wouldn't be the first time a similar idea has been floated. Earlier this year, during a roundtable at CES, Noriya Kaihara, the director and executive vice president of Honda Motor Company, suggested that his company could work with Nissan to build full-size vehicles for the U.S. market. "Maybe in the future, we can co-develop those vehicles," he said at the time. "But in the short term, if we need, we can get some of the Nissan vehicles for Honda as well."
When reached for comment about the situation, a Nissan spokesperson told Car and Driver, "We continue to work on the projects in collaboration with Honda as previously announced. At this time, we have no additional updates to share. As a matter of policy, we do not comment on speculation."
A Honda representative had this to say about the report: "The content of the reports did not originate from Honda, and no decisions have been made at this time. While Honda, Nissan, and Mitsubishi Motors are exploring a potential strategic partnership, we have nothing to announce at this stage."
Due to increasing pressure from the effects that U.S. tariffs will likely have on Japanese production, executives from Honda and Nissan have reportedly been meeting since April. While there doesn't appear to be any plans to reopen merger talks, the automakers are obviously open to working together, and that could prove beneficial for both parties.