Following the collapse of a potential merger between Honda and Nissan, Japanese newspaper Mainichi Shimbun has reported that senior executives at Toyota have initiated discussions with Nissan to explore possibilities for future collaboration. While neither company has issued an official statement, in an era where the global auto industry is rapidly transitioning to electric mobility, strategic alliances have become an increasingly vital path to survival—particularly for Japanese automakers facing intensifying competition from emerging global players.
According to the Mainichi Shimbun on May 20, citing sources familiar with the matter, top executives at Toyota Motor reached out to Nissan to discuss a potential partnership. Although Nissan declined to comment and Toyota is still reviewing the report before making any official announcement, the mere existence of such rumors highlights the growing desire among struggling Japanese automakers to form alliances amid the accelerating shift toward electrification.
Among Japan’s three major automakers, Nissan has faced the greatest pressure regarding its future viability, due to fierce market competition and the challenges posed by the electric vehicle (EV) revolution. As a result, Nissan initiated merger talks with Honda—discussions that dragged on for nearly a year before ultimately falling apart.
Preliminary discussions between Nissan and Honda began in March 2024, with a shared goal of jointly developing EV technologies. By August, Mitsubishi Motors also joined the talks. Tensions escalated further when Hon Hai (parent company of Foxconn) expressed interest in acquiring Nissan, prompting Nissan and Honda to announce on December 23, 2024, that they were entering merger negotiations. The proposed plan involved creating a holding company, under which Nissan and Honda would become subsidiaries, with Mitsubishi also considering participation. However, the plan ultimately faltered due to disagreements over the merger structure—particularly Honda’s proposal for Nissan to become a subsidiary, which was strongly opposed by Nissan’s leadership.
On February 6, 2025, then-CEO of Nissan, Makoto Uchida, visited Honda headquarters to formally terminate the merger talks. One week later, on February 13, Nissan, Honda, and Mitsubishi jointly announced the official cancellation of the Memorandum of Understanding for the three-way alliance.
For Toyota, a potential partnership with Nissan could represent a strategic leap to solidify its leadership among Japanese automakers—especially as the industry undergoes a major transformation toward full-scale electrification.
Toyota already holds stakes in several Japanese automakers: 20% in Subaru, 5.1% in Mazda, and 4.9% in Suzuki. Should Nissan be added to its network of partners, the resulting alliance would span the entire automotive spectrum—from compact cars to luxury vehicles to commercial trucks. Like Nissan, Toyota is also under pressure from the global EV transition and is actively steering its corporate direction to align with emerging market trends. With both companies now aiming in similar strategic directions, a partnership appears increasingly plausible.
However, the failed talks between Nissan and Honda underscore the complexities of such mergers. A potential alliance between Nissan and Toyota would also face significant hurdles—particularly due to differing corporate philosophies and strategies. For instance, former Nissan CEO Makoto Uchida strongly advocated the "survival theory," which emphasized fiercely preserving the company’s independence and identity. These ideological differences raise questions about how far a partnership between these two Japanese giants can realistically progress in the evolving world of mobility.
