Nissan may have found a potential lifeline in Toyota as it battles mounting debt, declining sales, and a failed merger attempt with Honda. According to Japanese outlet Mainichi, a Toyota executive has reached out to Nissan about a possible partnership that could see Toyota backing its struggling rival through a major restructuring.
“If we don’t take action now, the situation will only get worse,” Nissan President Ivan Espinosa warned during a May 13 press conference. Just days earlier, the automaker unveiled “Re:Nissan,” a sweeping turnaround plan to slash costs by 250 billion yen and return to profitability by fiscal year (FY) 2026.
As part of the plan, Nissan will eliminate 20,000 jobs by FY2027 and shut down seven production plants—including two in Japan and one in Thailand. It has also scrapped plans to build a new EV battery facility in Japan, signaling deeper cutbacks in capital investment.
The pivot also comes after Nissan’s proposed EV merger with Honda collapsed in February. Left without a partner in a rapidly consolidating industry, Nissan is now reportedly exploring a tie-up with Toyota. While details remain unconfirmed, the partnership could involve Toyota acting as a financial and strategic backer during Nissan’s restructuring.
Both companies are gearing up for aggressive EV rollouts. Nissan’s next-gen LEAF will debut in North America later this year with longer range, a Tesla-compatible NACS port, and a more SUV-like design. The new LEAF is one of ten electric Nissan or Infiniti models expected by 2027, including the Micra EV, Qashqai crossover, and Juke EV in Europe.
Toyota, meanwhile, will launch its redesigned bZ electric SUV in the U.S. in late 2025, followed by the compact C-HR EV and rugged bZ Woodland edition in 2026. European buyers can expect three new Toyota electric SUVs by the end of that year.
While neither automaker has officially confirmed a partnership, discussions appear to be underway. For Nissan, the move could be critical to ensuring survival—and for Toyota, it’s a chance to shape the EV future of one of Japan’s most storied automotive brands.
