Mitsubishi Motors is examining the possibility of building vehicles in the US through shared production with Nissan Motor and Honda Motor, as pressure from US auto tariffs intensifies.
President and CEO Takao Kato told Nikkei Asia that joint manufacturing with Nissan and Honda is one of the options under discussion.
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He indicated that the company is working toward firming up plans in the near term, saying Mitsubishi “aim to make concrete progress until our next medium-term plan is announced” as early as spring.
Kato did not disclose which models or which US facilities might be used if a joint production scheme goes ahead.
Mitsubishi and Nissan had already revealed in May that they were studying the feasibility of producing sport utility vehicles together at Nissan’s plants in the US.
Mitsubishi currently has no manufacturing base in the country, relying entirely on imports from Japan for the vehicles it sells there. That dependence leaves models such as the Outlander and Eclipse Cross exposed to tariff-related risks.
Rising costs have added to the strain, with Mitsubishi’s North American operations slipping into the red for the April–September period. The company sold 113,000 vehicles in the US in fiscal 2024, equivalent to about a tenth of the volumes handled by either Nissan or Honda.
Given its smaller scale, Mitsubishi faces a significant financial hurdle in shouldering the investment required for a standalone US factory amid elevated labour and materials expenses.
“It’s absolutely difficult to continue [the North American business] on our own,” Kato said.
Nissan currently runs two US assembly plants: Canton in Mississippi and Smyrna in Tennessee. However, softening demand has dragged down utilisation rates, putting pressure on profitability.
Honda, by contrast, operates five plants in the US, all of which are reported to be running near full capacity, offering limited scope to add production on its own.
Collectively, Mitsubishi, Nissan and Honda held more than 15% of the US market last year, edging past Toyota Motor. Even limited-scale joint production is seen by the companies as a path to meaningful cost savings.
Nissan and Honda are already exploring joint vehicle development in North America. On the question of Mitsubishi joining that effort, Kato said the company “would prefer if we’re able to cooperate in the US as well.”
Kato added that Mitsubishi is in talks with Nissan and Honda on further collaboration outside the US.
Currently, Nissan supplies minivans to Mitsubishi in the Philippines, while Mitsubishi manufactures pickup trucks for Nissan in Oceania.
Mitsubishi entered three-way discussions with Nissan and Honda in August 2024, following earlier talks between Nissan and Honda over a potential merger, which fell apart in February this year.
The three companies have since returned to considering a broader partnership framework.
Nissan, Mitsubishi’s largest shareholder, has drawn renewed scrutiny as Nissan works to address its own business challenges.
President and CEO Ivan Espinosa has stated that Nissan is not looking to sell its stake in Mitsubishi at this point.
On the outlook for the relationship, Kato said “advancing talks on collaboration comes first,” and added that “going forward we’ll consider whether a more in-depth restructuring is necessary.”
