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Honda and Nissan are contemplating producing automobiles in each other’s factories as a part of their plan to deepen ties and potentially merge, Japan’s Kyodo information company mentioned on Saturday.
Honda will think about supplying hybrid automobiles 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 automobile firm, and Nissan, its third-largest, would create the world’s third-largest auto group by car gross sales, behind Toyota and Volkswagen, making 7.4 million automobiles a yr.
The two automakers solid a strategic partnership in March to cooperate in electrical car improvement, however Nissan has confronted monetary and strategic troubles in latest months.
As introduced, Honda, “Nissan and Mitsubishi Motors are within the technique 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 based mostly on an organization announcement. Nissan is the highest shareholder in Mitsubishi Motors.
Kyodo mentioned Honda might use Nissan’s automobile 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.
