Key facts
- Honda CEO Toshihiro Mibe stated that a business collaboration with Nissan is progressing and "close to announcement."
- Previous merger talks between Honda and Nissan collapsed in 2024 over Honda's demand for Nissan to become a subsidiary.
- Nissan's financial performance has improved, while Honda has recently reported losses, potentially leading to a more balanced negotiation.
- External factors, including U.S. tariffs on imported vehicles, are pressuring Japanese automakers to collaborate.
- The companies are exploring cooperation in areas such as electric vehicles and autonomous driving technologies.
Honda Motor is signaling that a business collaboration with Nissan Motor is nearing an announcement, according to Honda CEO Toshihiro Mibe. This potential partnership follows the dramatic collapse of merger talks between the two Japanese automakers last year, which were complicated by Nissan's resistance to Honda's demands for it to become a wholly owned subsidiary.
Initially, Nissan's financial position was deteriorating, positioning Honda as a potential rescuer. However, the situation has reversed, with Nissan posting an annual operating profit while Honda has recently reported losses. This shift in fortunes may pave the way for renewed discussions on more equitable terms.
Discussions about specific areas of collaboration are ongoing, with both companies aiming to maximize mutual benefits and regain industry leadership. Areas of exploration include electric vehicles and autonomous driving technologies, with Mitsubishi Motors also having been involved in initial discussions. External pressures, such as U.S. tariffs on imported vehicles and components, are also driving Japanese automakers toward collaboration, as these tariffs are projected to significantly impact the profitability of both Honda and Nissan.
Despite past disagreements and lingering trust issues, recent executive meetings suggest an improvement in relations. Changes in Nissan's leadership, including the appointment of Ivan Espinosa as CEO, have reportedly led to a more decisive approach, which has helped rebuild Honda's confidence. The ultimate outcome of these discussions remains uncertain, with significant differences still reportedly existing between the two companies.