Nissan is on the brink of collapse. After the Honda deal failed to materialize, it appears that another Japanese automaker is extending a helping hand. As Nissan faces financial turbulence, whispers emerge of a potential partnership with Toyota, potentially paving the way for a lucrative alliance.
Are Toyota and Nissan partnering?
“Nissan’s President Ivan Espinosa sounded the alarm during a May 13 press conference, warning that inaction would only exacerbate the situation.”
Faced with plummeting revenue, mounting debt, and stagnant earnings, Nissan unveiled a fresh revival strategy, “Re:Nissan,” last week. The beleaguered automaker aims to slash costs by ¥250 billion to regain profitability by FY 2026.
Nissan plans to streamline operations by reducing its workforce by approximately 20,000 positions by fiscal year 2027. The company is also canceling plans to build a state-of-the-art electric vehicle battery manufacturing facility in Japan. Seventeen different crops are expected to shut down, including one in Thailand and two in Japan.
Following the collapse of its planned electric vehicle (EV) partnership with Honda in February, speculation emerged that Nissan was actively seeking an alternative alliance.
Following the release of a recent report from Japan, Toyota’s governing body has reportedly initiated discussions with Nissan regarding several potential partnership opportunities. Toyota may take a stake in Nissan, serving as a financial backer as the company navigates its restructuring efforts.
Nissan and Toyota have simultaneously revealed a plethora of innovative electric vehicles slated for release in the near future. The all-new Nissan LEAF electric vehicle is set to debut in the US and Canada by the end of this year, boasting increased range, a novel NACS charging port, and a sleek new crossover design. By 2027, this model will likely be one of up to ten innovative Nissan or Infiniti designs set to hit the market.
Later this year, Nissan plans to introduce its next-generation LEAF in Europe, followed by the debut of a new electric Micra model and an electrified Qashqai crossover. By 2026, Nissan’s innovative Juke EV model will officially join its fleet.
From left, the latest models from Nissan: the brand-new Qashqai, LEAF, and Micra EV. (Source: Nissan)
As Toyota’s electrified bZ series continues to gain momentum, the revamped bZ electrical SUV – formerly known as the “bZ4X” – is set to hit US dealership floors by mid-2025.
By 2026, Toyota’s lineup will feature two new electric vehicles: the compact C-HR Hybrid Reimagined (C-HR) SUV and the rugged bZ4x Woodland Electric Vehicle. By the end of the year, Europe is expected to welcome three brand-new Toyota electric SUVs: the C-HR+, City Cruiser, and an upgraded bZ4X.
Electrek’s Take
With Toyota already holding stakes in several Japanese automakers, including 20% of Subaru, 5.1% of Mazda, 4.6% of Suzuki, and 5.9% of Isuzu, it’s hardly surprising that they might also back Nissan.
Nissan’s willingness to form new partnerships was highlighted by Espinosa. Nissan’s CEO revealed plans to continue partnering with other companies, including Mitsubishi, which will leverage the upcoming LEAF as a platform for its new electric vehicle in North America.
Japanese automakers’ tardiness in embracing all-electric vehicles has taken a toll on their competitiveness in crucial overseas markets such as Southeast Asia, Central and South America, and beyond.
Chinese electric vehicle (EV) leaders such as BYD are aggressively expanding their international presence this year to fuel growth and development. Subsequently, it will unveil its inaugural kei car (referencing early spy shots) – a mini electric vehicle that has already been dubbed “a massive threat” to Japan’s automotive industry.
Pooling assets and teaming up could be a highly effective strategy at this level, potentially offering a single best solution or a complementary approach to consider. Toyota’s alliance with Subaru could potentially help Nissan overcome its current challenges, but it ultimately depends on the specific nature of their partnership and the scale of support needed. Will it be too little, too late? I cannot provide ideas on a topic I don’t have information about. Can you please provide more context or clarify what you would like me to improve?
(Note: If I’m unable to improve the text, I will return “SKIP” as per your request.)
Examine again quickly for particulars. Will this narrative unfold into an exciting adventure? We will keep you informed about the latest developments.
