Mitsubishi CEO Takao Kato said that Mitsubishi Motors is considering manufacturing cars in the United States in partnership with Japanese companies Nissan and Honda. The strategy aims to reduce the pressure of customs duties on cars.
In a recent interview with Nikkei Asia, Kato said that joint production represents a possibility for cooperation with Nissan and Honda. Regarding the deadline for a decision, he said: “Our goal is to move forward concretely until announcing our next medium-term plan,” perhaps as early as early spring (in the Northern Hemisphere).
Kato did not specify which models or factories would be considered for co-production. In May, Mitsubishi and Nissan announced that they had begun studying joint production of SUVs at Nissan factories in the United States.
Mitsubishi has no car factories in the United States and all models sold on the market are imported from Japan. This leaves the maker of the Outlander and Eclipse Cross SUVs vulnerable to US tariffs. Costs rose and its North American business posted a loss in the first half (April to September).
Kato did not specify which models or factories would be considered for co-production. Mitsubishi’s U.S. sales totaled 113,000 vehicles in fiscal 2024, about 10% of Nissan’s or Honda’s sales volume. High labor and material costs mean that investments in U.S. factories the size of Mitsubishi put a heavy burden on the company.
“It is absolutely impossible to continue working in North America alone,” Kato said.
Nissan operates the Canton, Mississippi, plant and the Smyrna, Tennessee, plant. With sales falling, lower operating rates are hurting Nissan’s profits.
Honda has five U.S. plants, but they are all operating at high capacity, with little room to expand production.
Last year, the three automakers had a combined share of more than 15% in the United States, surpassing Toyota. Co-production of even a limited number of models would provide significant cost benefits.
Nissan and Honda are considering developing a joint vehicle in North America. Regarding participation in this project, Kato stated that Mitsubishi “would prefer that we could also cooperate in the United States.”
Mitsubishi is also discussing cooperation with Honda and Nissan outside the United States, Kato said. Nissan supplies pickup trucks for Mitsubishi in the Philippines, while in Oceania, Mitsubishi manufactures pickup trucks for Nissan.
In August 2024, Mitsubishi joined negotiations with Nissan and Honda, seeking to establish a tripartite partnership. After the failure of merger talks between Nissan and Honda in February this year, the three parties once again looked into ways of cooperation.
Nissan is Mitsubishi’s major shareholder, and its stake has attracted renewed attention as Nissan tries to turn around its faltering business. Nissan CEO Ivan Espinosa stated that he is not considering selling this asset at the present time.
“Advancing cooperation negotiations is the priority,” Kato said, before adding, “In the future, we will consider whether there is a need for a deeper restructuring.”