Reuters: Nissan's Mississippi Plant May Produce Pickups for Honda
Reuters, July 11 report, Nissan is negotiating with Honda Motor to supply vehicles in the U.S. market, aiming to help the struggling Nissan revitalize its underutilized factory capacity in the United States. The report said that Nissan is considering producing pickup trucks for Honda at its plant in Canton, Mississippi, which currently produces models such as the Frontier. After the failed talks between Nissan and Honda this year to merge and form the world's third-largest automaker, both sides stated that they will continue their cooperation in areas such as electric vehicles. Nissan said in a statement on Friday that there are no new developments beyond existing cooperation projects and declined to comment on market speculation. Honda has not responded yet. Data shows that Nissan recorded a net loss of $4.5 billion in the fiscal year ending March this year, under pressure from declining sales due to aging vehicle models, and it faces about $4.8 billion (approximately 70 billion yen) in debt repayments this year. Three major credit rating agencies have downgraded its debt rating to junk status. The new CEO, Ivan Espinoza, has announced a comprehensive cost-cutting plan including closing seven factories worldwide and cutting 15% of staff. Moody's analysts pointed out that like traditional automakers such as Honda, Nissan is facing strong challenges from Chinese competitors and uncertainties from U.S.-Japan car tariff negotiations.
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