Nissan Motor is considering a joint project with Honda Motor in the U.S., focusing on vehicle and powertrain development options.
The two Japanese automakers had previously discussed a potential merger, but negotiations ended in February due to disagreements over control issues.
CEO Ivan Espinosa clarified there are currently no merger talks or capital alliance plans, with discussions remaining exploratory between the companies.
Since taking charge in April, Espinosa has implemented major restructuring, cutting about 15% of workforce of Nissan and reducing manufacturing plants from 7 to 10.
Nissan stated discussions with Honda involve mutual product complementation, but the company has not formally announced any collaboration or joint production projects.
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The U.S. represents the largest auto market for both companies, where Nissan has struggled with hybrid vehicles, an area where Honda performs strongly.
Sources cited by Nikkei suggest Nissan may produce pickup trucks for Honda at underutilized U.S. plants, providing efficient use of manufacturing capacity.
Nissan’s North American sales grew almost 7% in the second quarter, benefiting from focused marketing and prioritizing retail over fleet sales.
Honda, relying on the U.S. for over two-fifths of global volumes, downgraded its profit outlook due to chip shortages and reduced North American vehicle forecasts.
The chip shortage from Nexperia forced Honda to cut annual sales forecasts in North America by 110,000 units, impacting the company’s overall fiscal performance.
