Nissan May Begin Manufacturing Honda Trucks in Mississippi

Wondering if Trump’s tariffs are accomplishing anything? Nissan may be preparing to share its underused Mississippi factory with Honda to help avoid tariff troubles.

Many people are wondering whether Trump’s tariffs will truly bring manufacturing back to American soil. The answer is beginning to become clear. According to the Japanese financial newsletter Nikkei, Nissan and Honda are discussing possible collaboration in the face of potential tariff troubles.

The situation could be beneficial to both major automakers. Honda needs a place in the United States to build its trucks, and Nissan has a factory operating below full capacity in Canton, MS. A collaboration is the best way for Nissan to utilize its resources fully and for Honda to avoid tariffs.

Nissan and Honda’s Recent History

Earlier this year, Nissan and Honda ended an agreement that could have created the world’s third-largest auto group. However, at the time, the two companies agreed to collaborate on future projects. Could manufacturing body-on-frame Honda trucks in the US be one of them?

According to Automotive News, an outlet that contributed to early reports of the potential collaboration, an insider with knowledge of the situation said that Nissan building Honda’s body-on-frame trucks is one of several possibilities under consideration.

Currently, Honda manufactures the unibody Ridgeline in Alabama. Nissan sells the body-on-frame Frontier, built in Mississippi. The new collaboration would mean that Honda would design a Frontier-sized truck to be developed by Nissan.

Both Sides Win In This Arrangement

Honda will benefit from this arrangement, as building trucks in the US means avoiding high tariffs. Utilizing Nissan’s currently underutilized manufacturing plant would enable the automaker to quickly increase production without incurring significant development costs.

The deal would also benefit Nissan, which is currently experiencing financial difficulties. Currently, fewer people are visiting Nissan dealerships than the company would like to see.

When contacted for a comment on the current situation, Nissan’s spokesperson told Car and Driver that the company continues to collaborate with Honda as announced, and there are no additional updates to share.

Honda has been more forthcoming. Earlier this year, at a CES roundtable, Honda’s director and executive vice president, Noriya Kaihara, indicated an interest in working with Nissan to build full-size trucks in the US. He suggested both co-developing vehicles and purchasing Nissan vehicles for Honda.

The Future of Japanese Automakers Under New US Tariffs

The increasing pressure from US tariffs could have a dramatic impact on Japanese automakers’ production. Honda and Nissan have been meeting since April to discuss possible ways to collaborate on projects that will avoid the tariffs.

According to a Honda representative commenting on the report mentioned above, Honda, Nissan, and Mitsubishi Motors are all exploring a potential strategic partnership. Currently, the automaker has no additional comments on what that partnership will look like.

For those who were uncertain whether the tariffs would truly bring manufacturing back to the US, Honda and Nissan’s potential decision to increase production at the Nissan plant rather than manufacture Honda body-on-frame trucks abroad seems to indicate the answer is a solid “yes.”