Look, The Nissan-Honda Partnership Is Back, But Different This Time

Despite the abandoned merger earlier this year, the two Japanese automakers are actively chatting about joint development of new products and powertrains for North America, Nissan CEO Ivan Espinosa confirmed in an interview with Nikkei.

"We are talking about how we can collaborate in the U.S. Is there any opportunity for joint product development or for powertrain development? These are the topics that we are discussing," Espinosa told the outlet in an interview held at the automaker's headquarters in Yokohama, Japan.

“We are open to anything,” Espinosa said, hinting at the potential to produce Honda vehicles using Nissan's production capacity in the United States. “Both companies have strong coverage in manufacturing, supply networks, and engineering in the U.S., so there’s a lot of opportunity to explore.”

Honda and Nissan already have an ongoing partnership focused on vehicle intelligence and electrification, which was signed last summer. The new talks appear to build on that foundation, with the scope creeping into areas like hybrid and internal combustion technology. It was rumored that one of the reasons the proposed merger disintegrated was because Nissan balked at the idea of ditching its own hybrid tech in favor of Honda's— it will be interesting to see how the two automakers collaborate in this space.

But Espinosa was quick to clarify to the outlet that the renewed talks do not include a merger or capital tie-up. “We are not discussing integration.” So they might have a baby together, but neither is looking to get married at this time.

Nissan claims the discussions are not driven by U.S. tariffs, but both Nissan and Honda have been smacked by trade policy shifts. Washington’s new import duties— set at 15% on Japanese-built vehicles, up from the previous 2.5%—have devoured profit margins for both automakers. Nissan expects the tariffs to eat $1.8 billion from its operating profit for the fiscal year ending March 2026, while Honda forecasts closer to a $2.5 billion hit.

"What I can say is [that] the spirit of the discussions is very constructive, very positive," Espinosa said. "We continue to meet very regularly between the teams and also the top management of both Nissan and Honda."

Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.