Honda and Nissan contemplate mutual manufacturing of autos, Kyodo studies

TOKYO (Reuters) -Honda and Nissan (OTC:NSANY) are contemplating producing autos in each other’s factories as a part of their plan to deepen ties and probably merge, Japan’s Kyodo information company mentioned on Saturday.

Honda (NYSE:HMC) will contemplate supplying hybrid autos to Nissan as a part of the plan, the report mentioned, with out citing the supply of the data.

A merger of Honda, Japan’s second-largest automotive firm, and Nissan, its third-largest, would create the world’s third-largest auto group by automobile gross sales, behind Toyota (NYSE:TM) and Volkswagen (ETR:VOWG_p), making 7.4 million autos a yr.

The 2 automakers cast a strategic partnership in March to cooperate in electrical automobile growth, however Nissan has confronted monetary and strategic troubles in latest months.

As introduced, Honda, “Nissan and Mitsubishi Motors (OTC:MMTOF) are within the means of bringing collectively our strengths and exploring potential types of cooperation, however nothing has been determined but”, a Honda spokesperson mentioned, when requested in regards to the report.

Nissan declined to remark, saying the main points of the report weren’t primarily based on an organization announcement. Nissan is the highest shareholder in Mitsubishi Motors.

Kyodo mentioned Honda might use Nissan’s automotive manufacturing facility in Britain, because it now solely has factories for engines and bikes in Europe.

The transfer comes amid considerations over how president-elect Donald Trump’s insurance policies might shake up manufacturing together with his guarantees of protectionist commerce insurance policies, the report mentioned.