Just when we thought Nissan and Honda were about to take over the world, something has just shifted. The automotive industry is so interesting sometimes. One moment, there are talks about collaborations, growth, and executions, and before we know it, or when we are anticipating something, we see that there is a dead end. Japan was on the rise, very close to what they could have called success and power; however, it looks like these two brands did not fully agree on certain terms. Both brands are powerful brands and have freedom; therefore, no one can suppress the other.
Nissan and Honda came together to form a strong auto partnership, but something happened
For every unsuccessful handshake, there is always tension between two or more collaborations that would have seen a future in implementing whatever they want to. It happened that in December 2024, about six months ago, Nissan and Honda came together and signed a memorandum of understanding (MOU) to work together and form a strong automotive partnership for the future of mobility. However, that did not last long.
Fast forward to February 2025, the collaboration ended, and this is why: Nissan was against becoming a Honda subsidiary, and as a result, they ended their merger. However, both brands are still working together in the formation of electrification and software. Nissan, being a powerful car brand, had its leverage and freedom to leave this partnership because it is not one of those brands that need help to establish itself. It was a bold move.
A mythical carmaker wants to join what could have been the ‘Seal of the Century’
This car brand seemed to have been sneaky, paying attention to and following up on the Nissan-Honda partnership. The moment these two brands ended their contract, regarded as the world’s best car brand, Toyota stepped in. Did it try to fix the issues between Nissan and Honda? No, instead, Toyota found a loophole or a chance to profit from one of these car brands.
Let us break it down:
- Honda and Nissan come together to form a partnership, but that falls apart.
- Nissan disagrees with being a subsidiary of Honda.
- The two companies are still collaborating on other elements of auto-making.
- One company wants to be part of this collaboration, or, rather, take one of the car brands and form something. A company that unveiled its secret, the first-ever clean combustion engine, to shock the world.
Following the failure of the Honda merger, Toyota contacted Nissan
Just to be clear, Nissan did not approach Toyota to form a partnership or an agreement; it was vice versa. It seems like Toyota is interested in forming something with Nissan. We do not know what it is, what the goal and benefits are, but it looks like Nissan is a potential car brand that other brands wish to work with. Or is it another strategy Toyota wants to use to own a part of Nissan, since Nissan is still vulnerable?
Whatever the case may be, we can see that Toyota is moving mountains. It includes a lot of innovations, such as going blue with just water and steam to power a vehicle, a 2026 project coming up. Who knows? Perhaps it is also their goal to formulate more projects, but this time in collaboration with Nissan. This is so interesting because, had this approach transpired in the next year or so, we would not see it as a strategy to win Nissan over. However, soon after Nissan and Honda parted ways, Toyota decided to knock on the door. Why? Is the underlying question, and I wonder what Toyota is planning next.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind. For more information, please visit our Trust Principles.
