Honda Eyes Nissan’s Mississippi Plant for Pickup Output

Nissan is in talks to produce Honda pickup trucks at its Canton, Mississippi plant in a bid to boost utilization at the underused facility, the Nikkei newspaper reported, citing unnamed sources. The proposal would allow Honda to leverage Nissan’s existing US manufacturing capacity while helping Nissan address low output at the Canton plant.

The discussions come after the collapse of earlier merger talks between Nissan and Honda earlier this year, which had aimed to create the world’s third-largest automaker. Despite the failed merger, the companies agreed to continue collaborating on specific projects, including electric vehicles. On July 11, Nissan stated it had “no additional updates” but confirmed it continued to work with Honda on existing projects, adding that it “would not comment on speculation.”

Nissan is under growing financial pressure. The company reported a net loss of US$4.5 billion for its fiscal year ending in March and faces approximately ¥700 billion (US$4.8 billion) in maturing debt this year. All three major credit rating agencies have downgraded Nissan to junk status. In response, CEO Ivan Espinosa has launched a cost-cutting strategy that includes the closure of seven plants worldwide and a 15% workforce reduction.

Like other legacy automakers, Nissan and Honda face mounting competition from Chinese EV manufacturers and are also grappling with the implications of US–Japan trade negotiations over auto tariffs.