The automotive world has been filled with a lot of collaboration headlines lately. For example, Toyota and Mazda are partnering up to produce a sports car. Volkswagen has also invested $5 billion into Rimac in a sort of alliance to produce EVs. There were also talks of a proposed merger between Nissan and Honda. However, that merger seems not to be going as planned. As a result, they are back on the market in search of a new partner.
In a media roundtable in Japan, Nissan chief performance officer Guillaume Cartier explained:
‘Developing new vehicles has only gotten more expensive with the high cost of electrified powertrains, advanced driver assistance systems, increased connectivity, and the advent of the software defined vehicle. It was the need for scale that drew Nissan and Honda together. Further extending their assorted projects to a proposal for a merger. Those talks failed a few months later, but projects continue. We never stopped talking (to Honda).’
Trump-Ordered Tariffs on Imports Affecting Nissan
President Donald Trump signed a new executive order announcing a 25-percent tariff on all foreign-built vehicles. Speaking from the Oval Office, president Trump said the tariff would ‘spur growth’ and boost the US auto industry ‘like it’s never flourished before.’ The tariff is projected to bring in $100 billion in new revenue for the US. The tariff is expected to go into effect on April 2, barring any further delays.

As a result of the tariffs, Nissan is projecting hard times to come for the company. This is because Nissan makes about a third of its vehicles in Mexico. This means that when the 25-percent tariff goes into action, dealerships will have no option than to mark-up the prices of Nissan vehicles. But if these vehicles become expensive, they are bound to lose customers to their competitors who produce within the US.
Espinosa, the new CEO at Nissan shared, ‘The future is challenging, both internally and externally. The name of the game is efficient partners that add value to your company. Under his leadership, Nissan will talk to just about anyone—there are no taboos—but Nissan is also prepared to go it alone and pursue its vision.’
Ultimately, Nissan is going through hard times but with a new CEO who is open and willing to partner with just anyone, help may just be on the way. For now we watch and wait to see how Nissan handles the situation. What are your thoughts on the newly imposed Tariffs and Nissan’s current state of affairs?