Mitsubishi Motors is exploring joint vehicle production in the United States with Nissan Motor and Honda Motor to mitigate tariffs, a move that could reshape its North American manufacturing strategy.
Key Takeaways
- Mitsubishi’s US market share was 10% last year compared to over 25% for Nissan and Honda combined
- The company is considering shared production facilities in the U.S. but hasn’t finalized plans yet.
- Tariffs on imported vehicles have put pressure on Mitsubishi’s North American operations, leading it into a loss during April-September 2024.
Mitsubishi Motors President and CEO Takao Kato announced that the company is examining options for joint manufacturing with Nissan Motor and Honda Motor to address tariff-related risks. The Japanese automaker currently imports all its vehicles from Japan, leaving it vulnerable to rising import costs.
While Mitsubishi’s US sales hit 113,000 units in fiscal year 2024, that’s only a tenth of the volume handled by Nissan and Honda individually. Kato noted that building an independent manufacturing base in the U.S. would be financially challenging given current economic conditions.
Nissan operates two assembly plants in Mississippi and Tennessee but has been facing softening demand for its vehicles. Mitsubishi’s smaller scale makes it hard to justify standalone production facilities, especially with high labor and material costs.
Joint manufacturing could help Mitsubishi reduce costs while leveraging existing infrastructure from Nissan and Honda. However, the company hasn’t disclosed specific models or U.S. plants that might be involved in any joint venture plans.
Frequently Asked Questions
When does Mitsubishi plan to finalize its production strategy?
Mitsubishi aims to make concrete progress until the announcement of their next medium-term business plan, which could be as early as spring.
What’s the current market share for Nissan and Honda in the US compared to Mitsubishi?
Nissan and Honda together held over 25% of the U.S. auto market last year while Mitsubishi had around a tenth, or 10%, at that time.
As tariffs continue to impact imported vehicles, Mitsubishi’s potential joint venture with Nissan and Honda could be crucial for its future in North America.
