Ford and Nissan CEOs warn of possible automotive consolidation

Ford and Nissan CEOs say the global auto industry may face consolidation as automakers pursue partnerships, cost cuts, and technology alliances to stay competitive.

Talk of a new wave of consolidation in the global automotive industry is increasingly coming not from analysts but from the executives who run the companies themselves. This time the subject was raised by the leaders of Ford and Nissan, whose comments suggest how rapidly the structure of the industry may be changing.

Nissan CEO Ivan Espinosa, speaking in an interview with the Financial Times, acknowledged that even large automakers are finding it increasingly difficult to maintain stability in the current environment. According to him, the company must remain flexible and open to different forms of cooperation. When asked about the hypothetical possibility of selling Nissan to another automaker, he did not rule it out completely, noting that in today's “crazy world anything is possible.”

His remarks come at a time when Nissan is undergoing a major internal restructuring. The company is implementing the Re:Nissan strategy, a program designed to restore financial stability and improve operational efficiency. The plan includes roughly 500 billion yen in cost reductions, split between variable and fixed expenses. At the same time, Nissan intends to significantly streamline its manufacturing footprint by reducing the number of global assembly plants from 17 to 10 by fiscal year 2027.

The restructuring is already accompanied by concrete steps. Nissan has begun shifting production between plants, reorganizing its global manufacturing network and reassessing participation in certain joint ventures. Among the announced measures is the transfer of production from the CIVAC plant in Mexico to the Aguascalientes complex, along with other changes to the company’s manufacturing structure. Industry reports also refer to plans to cut around 20,000 jobs worldwide as part of the broader turnaround effort.

At the same time, Nissan continues to explore partnerships with other automakers. Earlier discussions included the possibility of deeper integration with Honda, but negotiations on a broader business combination were ultimately discontinued. According to Honda’s official statement, the talks initially focused on forming a joint holding company, but later shifted toward a structure in which Honda would become the parent company and Nissan a subsidiary. After evaluating the proposal, the companies decided to end the negotiations, citing the need for faster decision-making in a rapidly evolving industry. However, cooperation in areas related to electrification and intelligent vehicle technologies is expected to continue.

Ford CEO Jim Farley also believes the automotive market could enter a period of significant consolidation. However, he has emphasized that Ford’s strategy is not focused on large acquisitions. Instead, the company prefers to expand collaboration in technology and intellectual property, allowing partners to share development costs and accelerate innovation.

This perspective reflects the broader transformation of the industry. Automakers are simultaneously navigating several major technological shifts: the rapid expansion of electric vehicles, the growing importance of software in modern cars, and the development of connected and autonomous driving systems. Each of these trends requires massive investment and new technical expertise that are increasingly difficult for a single company to develop alone.

Industry research suggests that the market for automotive software and electronics could nearly double by 2030. As a result, manufacturers are increasingly pooling resources through partnerships and alliances in order to speed up development and reduce financial risk. In this environment, discussions about cooperation and consolidation are becoming more frequent across the sector.

For now, most of these scenarios remain strategic possibilities rather than immediate plans. Yet the fact that leaders of major automakers openly discuss partnerships, alliances and even hypothetical sales signals that the global automotive industry may be entering an era where collaboration and shared investment become central to maintaining competitiveness.