Honda and Nissan are Considering Producing Vehicles Together
Honda and Nissan, two of Japan’s major automakers, are mulling the possibility of producing vehicles in each other’s factories as part of a plan to deepen their ties and potentially merge. The move, reported by Kyodo news agency, is part of a broader agreement between the two companies to cooperate in electric vehicle development.
As part of the plan, Honda is said to be considering supplying hybrid vehicles to Nissan. If a merger were to happen, it would create the world’s third-largest auto group by vehicle sales, behind Toyota and Volkswagen.
Nissan has been facing financial and strategic troubles in recent months, which could be addressed through a potential merger with Honda. A spokesperson for Honda declined to comment on the report, while Nissan said that the details were not based on a company announcement.
One possible outcome of the proposal is for Honda to use Nissan’s car factory in Britain, which is currently only used for engines and motorcycles in Europe. The move comes amid concerns over how President-elect Donald Trump’s protectionist trade policies may shake up manufacturing globally.