Nissan-Honda-Mitsubishi: Secret Talks Resume After Merger Collapse

A year after the spectacular collapse of their merger project, Nissan, Honda and Mitsubishi continue discussions behind closed doors. Less flashy than the mega-alliance announced in 2024, this pragmatic approach focuses on model-sharing and collaborative technical projects. The three Japanese automakers are hunting for concrete solutions to face global market challenges.

"We have both made progress individually and it is not yet time to draw conclusions" — Noriya Kaihara, Honda Executive Vice President

Discreet But Real Collaborations

The facts speak for themselves: Nissan already supplies Mitsubishi with a version of its Leaf electric vehicle. The two partners are jointly studying development of an SUV for the North American market. Another concrete example—Nissan markets Mitsubishi's plug-in hybrid Outlander in the United States under the Rogue badge. A clever way to fill gaps in its hybrid lineup without massive R&D investment.

On Honda's side, caution prevails. According to Automotive News Europe, discussions center on model-sharing and common software systems, but Executive Vice President Noriya Kaihara carefully avoids premature optimism.

honda honda e 2026

Same Problems as Before

Reality is catching up with the three automakers: they share more difficulties than complementary strengths. Overlapping lineups, duplicate factories, competing markets. The obstacles that derailed the merger remain intact.

Honda is navigating rough waters anyway. The automaker posted 267 billion yen (roughly 1.8 billion euros) in losses over the first nine months of its fiscal year, primarily due to premature investments in electric vehicles. Operating profit plummeted 61.4% globally and 45.7% in the United States.

EV Strategy Downshifted

Faced with these headwinds, Honda revised its playbook. That 30% electric vehicle sales target by 2030? Shelved. The automaker now expects just 20%. More drastically, Honda slashed electrification investments by 30%, dropping from 10,000 to 7,000 billion yen.

The General Motors partnership delivered nothing resembling success. The Acura ZDX was killed after one year, and though the Honda Prologue limps forward into 2026, production falls short of targets. Honda even owes GM compensation for the situation, compounding losses.

When Does Unity Actually Work?

In this context, an alliance suddenly makes sense again. But the three automakers appear to have learned from past failure. No more romantic mega-mergers—this time, targeted deals and concrete projects. Nissan has pushed back its plan for four EV and battery plants in Ontario by at least two years.

Washington's 15% tariffs on Japanese vehicle imports complicate matters. Honda generates half its sales in North America, though it manufactures locally over 60% of vehicles sold there.

Internal Priorities First

According to Noriya Kaihara, Honda "will conduct a fundamental review of its strategies to rebuild competitiveness." A revised roadmap arrives soon. Development of certain electric models has been cancelled, including a three-row SUV destined for North America.

Nissan and Honda have chosen to postpone any full integration to focus on financial stability. A pragmatic approach that contrasts sharply with 2024's hype. But one that could pay dividends long-term, away from flashy announcements and broken promises.