Skip to main content

Nissan Merger Could Lead to Larger Honda SUVs

Shared software development and production are other potential benefits of this tie-up

Honda and Nissan logos
  • A deal with Nissan could see Honda build full-size vehicles based on the Titan truck and Armada SUV.
  • The tie-up would also allow Honda to spread the cost of developing its new in-car operating system, Asimo OS.
  • In the future, Hondas could also be built at Nissan plants in the U.S., taking advantage of spare capacity.

The proposed alliance with Nissan could lead to the development of larger Honda vehicles. Speaking at CES in Las Vegas last week, Noriya Kaihara, executive vice president of Honda, said the two companies could co-develop larger vehicles in the near future but added that, “The Honda must still be a Honda.”

Nissan has a full-size truck, the Titan, which has spawned large three-row SUVs for both Nissan (Armada) and Infiniti (QX80). Honda’s largest SUV is currently the Pilot, a midsize three-row, and its Ridgeline truck is also in the midsize class, rivaling the Ford Ranger. The opportunity to compete in the popular and financially lucrative larger sector of the market would be of broad appeal to Honda.

2025 Nissan Armada driving

Sharing the costs of software development

This is not the only potential benefit to Honda of a Nissan merger. Honda is committed to developing its own software, Asimo OS, rather than utilizing third parties such as Google. The key advantage of this approach is the ability to own and control the flow of data from its vehicles, protecting privacy while helping it develop better systems for the future. The ability to spread the considerable cost of the software development across Nissan as well as Honda vehicles would be advantageous.

Building Hondas in Nissan plants

Production capacity is also of interest to Honda given the Trump administration’s threat of tariffs on vehicles made outside the U.S. While Honda’s U.S. plants are currently at full capacity, Nissan’s are not. Honda could potentially leverage Nissan’s spare capacity to build more cars on U.S. soil.

All these factors make a deal between the companies more likely, but it would be years before the true benefits are felt by U.S. car shoppers.