Honda and Nissan may use shared factories [Video]

Honda and Nissan are considering producing vehicles in one another’s factories as part of their plan to deepen ties and potentially merge, writes David Connett.

Reports said Honda could use Nissan’s car factory in Sunderland, as it now only has production sites for engines and motorcycles in Europe.

Last year Nissan announced a £2bn revamp of the Sunderland plant which employs 6,000 and which used to make its petrol-engined Qashqai, Juke and Leaf models.

Electric models of the vehicles will now be built there.

Experts say the factory has plenty of capacity to build additional Honda models there.

The two car makers forged a strategic partnership in March to cooperate in electric vehicle development, but Nissan has faced financial and strategic troubles in recent months.

A merger of Honda, Japan’s second-largest car company, and Nissan, its third-largest, would create the world’s third-largest auto group by vehicle sales, behind Toyota and Volkswagen, making 7.4 million …