The Nissan-Honda merger isn’t dead in the water just yet, as company executives, including new CEO Ivan Espinosa, noted that talks are still ongoing. Speaking exclusively with InsideEVs, Espinosa reportedly said he and Nissan both remain “very open” to potential collaborations, including the merger with Honda, which fell apart after failed negotiations.
Since late 2024, Nissan’s been openly vocal about seeking a new partner to help stabilize its financial future. Analysts and Nissan itself sounded the alarm after the company posted a horrific 2024 financial report, with some execs noting that Nissan was hemorrhaging cash with very little reserve left. Nissan later entered a memorandum of understanding (MOU) with Honda to negotiate a merger deal. But after that failed, Nissan and Honda ended negotiations, citing disagreements with former CEO, Makoto Uchida, as one of the causes of the stalemate.
Nissan And Honda Are Still Open To Collaborating To Some Degree
Speaking with Nissan’s Chief Performance Officer, Guillaume Cartier, reporters learned that Nissan “never stopped” discussions with Honda, despite the failed initial negotiations with the merger. As part of the negotiations, Honda wanted to become the leader in the merger, with Nissan being relegated to being a subsidiary of Honda, with both companies merging under a joint venture and a holding company separate from both entities.
However, due to disagreements at the executive level, the merger negotiations with the ending of the MOU. Despite the merger talks ending, Nissan and Honda remained committed to working together on electric vehicle and software development. The software component also focused on further researching and developing artificial intelligence, as both automakers see a strong future in software-driven automobiles.
“We are working every week with them because we have a lot of projects with them,” Espinosa further elaborated during the press conference. Foxconn continues to be in the picture as a possible partner, as its expertise in software development and hardware could help boost Nissan’s aspirations to build out its vehicle technology.
Nissan’s head of product planning for North America, Ponz Pandikuthira, also contributed to the press conference, noting that conversations are still ongoing.
“The conversations with Honda, was very clear with all of you, still are continuing. They never stopped. We’re thinking of doing individual programs with them. So just think—I’m using Honda as a hypothetical example here because that’s a real conversation going on, it’s not that any of this has been finalized,” Pandikuthira reaffirmed the press.
Pandikuthira further commented by saying Nissan is due to overhaul its SUV lineup, which includes Infiniti’s offerings. Partnering up with Honda could be beneficial in terms of component and parts sharing. And if there’s a common platform, it can help control production costs, especially in lieu of Donald Trump’s auto tariffs.
“But if you do the next generation of our large SUVs, that has to replace a Pathfinder, a Murano, a QX60 and a QX65,” Pandikuthira said, following up. “Four vehicles. And you know, those same vehicles have counterparts at Honda. So if you do develop a common platform with them, instead of maybe just 200,000 units, you’re immediately developing it for 400,000 units. You can see how very quickly you can get variable costs under control.”
Nissan Doesn’t Have A Cash Problem
Despite concerns regarding Nissan’s cash flow situation, Espinosa exclusively told InsideEVs the automaker doesn’t “have a cash problem.” Instead, the company needs to make adjustments to its strategy in order to repair a “cash flow generation” problem.
In short, the company’s current costs are essentially wiping out any of its meaningful profits, so Nissan needs to make the necessary changes to boost its profits and address this “cash flow generation” issue.
“I would say for partnerships in general, we are very open,” Espinosa concluded. “The future of the industry is going to be very interesting, and it’s clear that the name of the game in the future is how to build efficient partnerships that add value to your company. It could be in many shapes and forms.”
TopSpeed’s Take
Despite Nissan not merging with Honda, Nissan is still looking to integrate and partner up with a Big H for future vehicle development and financial security. It seems Nissan’s time with Renault under the Renault-Nissan Alliance has run its course, and the company could use a fresh start.
Many of Nissan’s products are starting to age out, and thus, the company could likely benefit from a partnership with Honda, especially as the industry continues to adjust to the Trump Administration’s latest auto tariffs.
Source: InsideEVs
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