Here's How Honda And Nissan Can Benefit From An Alliance

By now, you are probably aware that Nissan is in financial trouble and that Honda is a prime candite for an alliance. The two Japanese car companies are currently in talks. The Renault-Nissan-Mitsubishi alliance is still in effect as Nissan still owns 24.05 percent of Mitsubishi and Renault reduced its voting stake in Nissan from 43.4 to 15 percent.

Given the latest developments, it looks like Renault wants to bail on Nissan, but not before Honda and Nissan come to an agreement. So, what are the long-term goals of this potential Honda-Nissan alliance? While it would seem that Nissan can benefit more from Honda, reports indicate otherwise. I dug around and here's what the two brands are aiming for and what we can expect. 

Honda and Nissan would eventually co-develop vehicles 

The long-term goal of the Nissan-Honda alliance is to co-develop the next generation of their respective lineups. A Honda executive suggested that Honda wants its own version of the Nissan Armada.

Initially, we could be talking about a rebadged variant of the Nissan SUV, with a co-developed platform later on. The all-new Infiniti QX80 recently debuted with a potent new twin-turbo V-6 and an updated body-on-frame platform.  

Honda could also adopt Nissan's body-on-frame platform for a new mid-size pickup truck. The current Honda Ridgeline has been around since 2021 and some of its competitors have brought out more modern stuff for less money. 

Honda is after splitting EV development costs 

One of the main reasons Honda is interested in Nissan is the ability to split EV development costs. Honda is behind on EVs and is yet to show us a global, fully-electric model. Nissan EVs have been doing great, with the Leaf even becoming the most sold electric vehicle at one point. With the Honda e discontinued in January 2024, the brand's current BEV lineup consists of three hybrid models – the Corolla-beating Honda Civic e:HEV, the Honda Accord Hybrid and the Honda CR-V Hybrid.  

If they join forces, Honda and Nissan are likely to work together not just on the software bit of their EVs, but also solid-state battery technology, which would greatly improve the viability of EV models. Honda is pushing for a fully-electric lineup by 2040, which could spell bad news for us enthusiasts, hoping for a next-gen Honda S2000.

Honda is investing approximately 15.0 billion in Canada in order to supply EVs without the end buyer having to suffer import taxes. Currently, Chinese EVs are being hit the hardest, with a 100 percent duty being imposed on them. 

What I would like to see from a Honda-Nissan alliance 

1. The Honda-Nissan alliance, indeed, opens new possibilities for both carmakers. I really hope Nissan ditches its Jatco CVTs and adopt Honda's iteration of the continuous variable transmission.  

1. With the resurgence of many iconic Japanese sports cars, the alliance would be a good occasion for Honda to give us a new S2000 – ideally, one powered by the Civic Type-R's engine, but longitudinally-mounted and powering the rear wheels. 

1. Honda has great reputation for reliability, rivaling that of Toyota. This is especially true when it comes to the Japanese company's engines. Nissan's more mainstream models can greatly benefit from Honda's 1.5 and 2.0-liter engines as well as Honda's transmissions, as they are more reliable than what Nissan, currently, offers. 

January 2025 will be definitive for Nissan and Honda as this is the time frame, in which the two companies would come to a decision. What are your thoughts on the Honda-Nissan alliance? What would you like to see from the two companies? Mitsubishi is still partially owned by Nissan, so some of the three diamonds’ iconic models, like the Lancer Evolution, could potentially return. Feel free to drop a comment in the comment section below. 

Dimitar Angelov's automotive interests made him an expert in a wide variety of vehicles. Japanese brands like Toyota are closest to his heart, although performance cars in general are his favorite segment, which is why he is constantly on the lookout for the best deals on the market. Dimitar Angelov's car passion and knack for the written word led him to complete a Master of Arts in Media and Communications, and classic car restoration. Dim is happy to get behind the wheel of any car and share his impressions. You can follow Dimitar on X, Linked-in, Instagram, and Facebook.

Image source: 2025 Nissan Patrol, 2025 Honda Civic e:HEV