Core Viewpoint - Honda and Nissan are resuming cooperation discussions after a breakdown in their previous merger talks, driven by increasing economic pressures and changes in leadership at Nissan [1][2]. Group 1: Cooperation Context - Honda's president, Takahiro Hachigo, indicated that while a full merger is not currently on the table, collaboration with Nissan and Mitsubishi is actively being pursued [1][2]. - The automotive industry is facing significant challenges due to U.S. tariffs, which have prompted both companies to consider joint strategies to mitigate financial impacts [3][4]. Group 2: Economic Pressures - The U.S. imposed a 25% tariff on imported vehicles in April, with additional tariffs on key components like engines, leading to a projected 70% decrease in Honda's consolidated net profit for the fiscal year ending March 2026 [3]. - Nissan is expected to face a profit reduction of up to 450 billion yen due to these tariffs, highlighting the urgent need for cost-cutting measures [3]. Group 3: Leadership Changes - The change in Nissan's leadership from Makoto Uchida to Ivan Espinosa is seen as a factor in restoring trust and facilitating decision-making within the organization [2][3]. - Regular meetings between the executives of both companies have resumed since April, indicating a thaw in relations [2]. Group 4: Future Collaboration - Discussions are ongoing regarding potential collaboration in electric vehicles and autonomous driving technologies, with Mitsubishi joining the talks [2][3]. - Both companies are exploring the possibility of supplying Honda and LG's vehicle batteries produced in North America post-2028, as well as joint research in software technologies [3]. Group 5: Market Sentiment - Analysts suggest that achieving scale through collaboration with Nissan and Mitsubishi could improve Honda's profitability in the medium term [4]. - There is a growing sentiment among investors that collaboration among Japanese automakers is essential to compete against threats from Chinese companies and the shift towards electrification [4].