Nissan Motor is considering supplying vehicles produced at its U.S. factory to Honda Motor in an effort to improve profitability and plant utilization for a turnaround, sources have said.
The two Japanese automakers are planning for Nissan to manufacture pickup trucks, which are popular in the United States, and for Honda to sell them under its own brand, the sources said Friday.
If finalized, the deal could strengthen Nissan's foothold in its mainstay U.S. market while helping Honda expand its vehicle lineup.
Increasing production in the United States is also seen as a way to mitigate the impact of a 25% additional auto tariff imposed by U.S. President Donald Trump's administration.
Nissan and Honda are also exploring potential cooperation on other types of vehicles and software.
Nissan released a statement saying that it continues to work on cooperation projects with Honda.
The two automakers launched management integration talks late last year, but the talks fell apart over Honda's proposal to make Nissan a subsidiary.
Still, Nissan President and CEO Ivan Espinosa indicated in May that his company would consider cooperating with Honda in the U.S. market.
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