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Nissan is considering producing pickup trucks for Honda at its Mississippi plant to mitigate tariff impacts. Analysts predict a 16.23% upside for Nissan's stock, with a current price target of $4.91. GuruFocus estimates a GF Value of $8.64, indicating a 104.74% upside. Nissan is exploring a strategic collaboration with Honda following the collapse of merger talks in 2025.

Nissan Motor Co. (NSANY) and Honda Motor Co. (HMC) are reportedly in discussions to produce pickup trucks for Honda at Nissan's underutilized Canton, Mississippi, plant. This move comes as both companies seek to mitigate the impact of upcoming U.S. tariffs on Japanese-made autos, expected to reduce Honda's operating profit by $4.42 billion and Nissan's by $3.06 billion [1].

Under the proposed arrangement, Nissan would manufacture large pickup trucks for Honda, which would then be sold under the Honda brand in the U.S. market. This collaboration would allow Honda to expand its presence in the full-size pickup segment, which currently accounts for about 20% of new car sales in the U.S. [1].

Nissan's Canton plant operates at just 57% capacity in 2024, and producing vehicles for Honda could help increase utilization and improve Nissan's financial position. The move would accelerate Honda’s local production without requiring significant investment in development. Additionally, Nissan has raised approximately 860 billion Japanese yen (~$5.86 billion) through oversubscribed bond offerings to support debt refinancing, general operations, and future investments in electrification and software-defined vehicles as part of its Re:Nissan recovery plan [1].

The collaboration comes after Nissan and Honda previously discussed a potential merger that fell apart due to differing views on the structure of the proposed union. Now, with growing tariff concerns, both companies appear to be moving toward renewed cooperation to rebuild their relationship. Analysts predict a 16.23% upside for Nissan's stock, with a current price target of $4.91. GuruFocus estimates a GF Value of $8.64, indicating a 104.74% upside [2].

References:
[1] https://www.benzinga.com/markets/tech/25/07/46363159/tariff-troubles-drive-nissan-honda-to-u-s-manufacturing-talks-report
[2] https://ng.investing.com/news/stock-market-news/nissan-in-talks-with-honda-to-build-vehicles-at-us-plant--nikkei-93CH-2002988