Companies

Nissan in Talks to Manufacture U.S. Pickups for Honda; Two Companies Aiming for Profit, Tariff Response

Yomiuri Shimbun file photo
Cars are lined up at a Nissan Motor Co. dealership near Los Angeles in January.

The Yomiuri Shimbun

15:10 JST, July 12, 2025

Nissan Motor Co. could potentially manufacture Honda Motor Co. pickup trucks at its plants in the United States under a strategic arrangement aimed to benefit both automakers.

The two companies are in talks regarding this collaboration, according to sources.

This would enable Honda to expand its product lineup in the United States and reduce the impact of tariffs, while giving financially struggling Nissan a boost in factory utilization.

This initiative involves Nissan producing pickup trucks, a popular vehicle category in the United States, and selling them under the Honda brand. This strategic move would enable Honda to strengthen its sales portfolio. Honda has had a small presence in the pickup truck segment of the U.S. market.

Nissan is experiencing a significant sales decline in the United States, partly because it has not been able to launch popular hybrid vehicle lines. Its local plant utilization rate for 2024 remained around 50%, which fell below the 70%-80% break-even point. This shortfall continues to demonstrably hinder its broader business performance.

Both companies view the United States as a key market, but the market environment has become increasingly challenging since the U.S. government imposed additional tariffs on Japanese automobiles in April.

It is estimated the impact of tariffs will push down Honda’s operating profit by ¥650 billion and Nissan’s by up to ¥450 billion in the fiscal year ending in March 2026. If the vehicle supply deal comes to fruition between two companies, it could lead to an improvement in both automakers’ profitability.

In December, Honda and Nissan began discussing business integration. However, the talks ended in February when Nissan opposed Honda’s proposal to acquire Nissan as a wholly owned subsidiary.

Nevertheless, the automakers have continued to explore collaboration on vehicle supply and electric vehicles. In May, Nissan President Ivan Espinosa revealed his intention to pursue cooperation with Honda in the United States.