Honda and Nissan Consider Factory Sharing as Merger Looms

Honda and Nissan are exploring cooperative efforts, including factory sharing and hybrid vehicle supply, as part of a broader strategic partnership. This move could potentially lead to a merger, creating the world's third-largest auto group. Concerns about trade policies under the Trump administration are influencing these discussions.

Honda and Nissan are reportedly exploring the possibility of producing vehicles in each other's factories to deepen ties and potentially merge, according to Japan's Kyodo news agency.

A key aspect under consideration includes Honda supplying hybrid vehicles to Nissan. If the merger materializes, it could position the combined company as the third-largest globally, after Toyota and Volkswagen, producing 7.4 million vehicles annually.

This cooperation comes amidst financial challenges faced by Nissan and uncertainties around trade policies under the Trump administration. Discussions are ongoing, though both companies have refrained from confirming details while exploring the proposal.

(With inputs from agencies.)