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Honda and Nissan Japan’s Kyodo news agency said on Saturday the two companies were considering building cars at each other’s factories as part of plans to deepen ties and possibly merge.
The report said Honda would consider supplying hybrid vehicles to Nissan as part of the plan, without citing sources.
After the merger of Honda, Japan’s second largest automobile company, and Nissan, the third largest automobile company, it will become the third largest automobile group in the world by sales volume, second only to Toyota and Volkswagen, with an annual production of 7.4 million vehicles.
The two automakers formed a strategic partnership in March to collaborate on electric vehicles, but Nissan has faced financial and strategic problems in recent months.
As Honda announced, “Nissan and Mitsubishi Motors are combining our strengths and exploring potential forms of collaboration, but no decisions have been made yet,” a Honda spokesperson said when asked about the report.
Nissan declined to comment, saying the report’s details were not based on company announcements. Nissan Motor is Mitsubishi Motors’ largest shareholder.
Kyodo News said Honda could use Nissan’s car plants in the UK as the company currently only has engine and motorcycle plants in Europe.
The move comes amid concerns that President-elect Trump’s policies could shake up manufacturing due to his promise of protectionist trade policies.
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