Report: Nissan Could Build Some Honda Trucks in Mississippi Factory
Nissan is eyeing drastic measures to stay afloat, and one of them could involve Honda – again. The automaker is reportedly considering taking on some Honda truck production at its factory in Canton, MS, where the Frontier is built.
While the merger talks between Honda and Nissan fizzled, the pair noted that they would continue looking at ways to work together, and Nissan’s Canton factory has excess capacity after the Titan was discontinued. This doesn’t mean Honda would get an all-new pickup, and more likely means some Ridgeline production would move, but we’ve been hearing rumors of a new Frontier-based Honda pickup, so it’d be silly to rule out a surprise.
Nissan officials declined to confirm the story, saying the automaker does not comment on speculation, and Honda did not respond to Reuters’ inquiries. That said, the deal could be a lifeline for Nissan, which is facing huge losses and has significant debts coming due. The automaker is closing factories and cutting its workforce to reduce costs, so a move to build Honda trucks could help keep the Mississippi factory open.
In addition to closing factories, Nissan plans to delay some supplier payments to retain cash, and it has streamlined new vehicle debut plans, cutting at least two electric models. It has also slashed production of some models for Canada, though that decision came after a significant inventory buildup.
[Images: Honda, Nissan]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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Does Honda know about this? Honda has excess capacity in its U.S. factories. They don’t need Nissan to build their trucks.
During the merger talks I speculated that Nissan's plant capacity might be valuable to Honda, if they needed it, given trade policy "uncertainty." It also may be possible for some sort of bastardized model aimed towards affordability, sold in this market only. Joint ventures are a long-standing arrangement if conditions call for it.