Regardless of the failure of a merger between Nissan and Honda earlier this 12 months, they’ve stored the strains of communication open. The 2 proceed to collaborate on electrical automobiles as Nissan faces an unsure future, however the pair may need to enter a full-blown situationship on account of Donald Trump’s tariffs.

A brand new report from Nikkei Asia, which doesn’t cite its sources, alleges the 2 are discussing the likelihood that Nissan’s Canton, Mississippi, manufacturing unit may construct Honda-branded pickups. The plant at present builds the Frontier and was the earlier house of the full-size Titan, which ended manufacturing with the 2024 mannequin 12 months.

If this deal occurs, it may benefit each.

Based on the report, Nissan’s Canton manufacturing unit operates far under its manufacturing capability, and producing a mannequin for Honda might enhance the plant’s output and profitability. Honda would get a brand new truck in the US that will assist it keep away from Trump’s tariffs whereas rising home automobile manufacturing, which might give Japanese automakers some negotiating leverage.

Honda Would possibly Not Be Alone in Canton

Honda’s truck—completely different from the Ridgeline—could possibly be constructed alongside some Mitsubishi fashions. Nissan confirmed in late Could that it was having discussions with Mitsubishi about producing vehicles in Canton, however a Nissan spokesperson knowledgeable the Clarion Ledger that the corporate hadn’t made a remaining resolution.

It seems Nissan is placing in effort to extend manufacturing at its vegetation all over the world. A Reuters report earlier this week alleged the beleaguered automaker may permit Foxconn to construct electrical automobiles at its Oppama plant in Japan, stopping its closure, however the corporations have been coy in regards to the report.

We think about these negotiations, if true, are ongoing and fluid, very similar to Trump’s tariff coverage.

Nissan’s struggles are well-known, and its new CEO, Ivan Espinosa, is contemplating a variety of choices to rescue the corporate. Final 12 months, below completely different management, Nissan introduced it might lay off 9,000 folks; nevertheless, a report from earlier this 12 months recommended the corporate might lay off double that quantity. It’s additionally closing factories, however it may have the ability to save a number of if it will probably carry new manufacturing to its underutilized services, decreasing the injury to its workforce.