Toyota Discreetly Contacted Nissan After Honda Agreement Fell Through | Carscoops

      Shortly after the failed merger deal with Honda, a Toyota executive reportedly reached out to Nissan to offer assistance.

      According to reports, Toyota extended an offer of support to Nissan following the collapse of their discussions with Honda. However, neither Nissan nor Toyota has confirmed any conversations regarding a potential partnership.

      Nissan is in the process of reducing its workforce by 20,000 jobs and shutting down seven of its 17 manufacturing plants.

      A lot can change in a span of six months, and Nissan's recent tumultuous journey exemplifies this. Late last year, Nissan was engaged in advanced conversations with Honda about a possible merger, and by January, it appeared that they were on the verge of a collaboration. However, the anticipated partnership quickly fell apart, leaving Nissan to navigate its challenges independently.

      It has now come to light that following the breakdown of the merger, another Japanese automaker extended a hand to Nissan.

      A report from Mainichi indicates that in February, a Toyota executive made contact with Nissan to offer support. The specifics of this support remain ambiguous, and neither Nissan nor Toyota has confirmed any discussions about a partnership. However, it's hard to overlook the possibility that Toyota may view Nissan's current situation as a strategic business opportunity.

      Toyota has a long-standing history of quietly increasing its financial stakes in other automotive companies. For instance, Toyota initially acquired a 0.22% stake in Daihatsu nearly 60 years ago, which gradually increased to 16.8%, then 33.4% in 1995. By 1998, they had raised their stake to 51.2%, and by 2016, Daihatsu was fully incorporated into Toyota.

      In addition to this, Toyota has made substantial investments in other manufacturers, holding about 20% of Subaru and around 5% stakes in both Suzuki and Mazda. Thus, it is evident that Toyota is experienced in making strategic investments when opportunities arise.

      Only time will reveal if Nissan will accept any form of investment from Toyota. For what it's worth, Nissan CEO Ivan Espinosa has stated that the company is open to new partnerships, although their current focus is on addressing internal challenges, at least for the near term.

      “This is a very open review that we’re conducting, and we are exploring potential partners that can add corporate value to Nissan,” Espinosa remarked last week while unveiling the brand’s ambitious turnaround strategy.

      This plan entails reducing 20,000 jobs globally, lowering the average labor cost by 20%, simplifying parts complexity by 70%, and cutting back on the number of platforms in use. Additionally, Nissan plans to close seven of its 17 production facilities worldwide.