Earlier in the year, Nissan and Honda failed to reach an agreement for a possible merger or a capital alliance. But as 2025 draws to a close, the two Japanese companies are back in discussion to explore another partnership possibility.

Nissan CEO Ivan Espinosa told Nikkei Asia reporters that they are discussing a joint vehicle project with Honda that is targeted for the US market. The mutual product project is still very much in its infancy, but it could involve shared vehicle and powertrain development between the two brands.

The United States is the biggest market by volume for both Honda and Nissan. Unfortunately for the latter, sales took a big blow as Nissan suffered from a lack of hybrid vehicles. With Honda being particularly strong in that aspect, Nissan could leverage that to get its sales back up.

Honda’s US plants, on the other hand, are reportedly being under utilized. Partnering with Nissan could bring the usage rate back up to maximize profits and minimize losses, as the latter is reportedly considering producing pickup trucks at Honda production plants.

With that being the case for the two companies, teaming up could be the way to go in order to stop the bleeding. Let’s see if this finally works out.