Honda and Nissan are considering the possibility of producing vehicles in each other’s factories. as part of their plan to strengthen ties and potentially merge, Japanese news agency Kyodo reported Saturday.
Honda will study the possibility of supplying hybrid vehicles to Nissan as part of the plan, according to the report, which did not cite the source of the information.
A merger of Honda, Japan’s second largest automaker, and Nissan, the third, It would create the third automotive group in the world by vehicle sales, behind Toyota and Volkswagen, which manufacture 7.4 million vehicles a year.
The two manufacturers forged a strategic partnership in March to cooperate on the development of electric vehicles, but Nissan has struggled financially and strategically in recent months.
As Honda announced, “Nissan and Mitsubishi Motors They are in the process of joining forces and exploring possible forms of cooperation, but nothing has been decided yet.“said a Honda spokesperson when asked about the report.
Nissan declined to comment, saying the details of the report are not based on a company announcement. Nissan is the main shareholder of Mitsubishi Motors.
According to Kyodo, Honda could use Nissan’s car factory in the UK, as it now only has engine and motorcycle factories in Europe.
The move comes amid concerns about how President-elect Donald Trump’s policies could affect auto manufacturing, due to his promises of protectionist trade policies, according to the report.
