February 17 to February 23, 2025:
1. Foxconn Proposes Partnership with Honda
Taiwan’s Foxconn has proposed forming a partnership with Japan’s Honda Motor, aiming to create a collaborative framework that includes other Japanese automakers such as Nissan Motor and Mitsubishi Motors. This move follows Foxconn’s interest in taking a stake in Nissan after merger talks between Nissan and Honda collapsed. The proposed partnership could have significant implications for suppliers, potentially leading to new collaborative projects and shifts in the supply chain. reuters.com
2. Japanese Auto Sector’s Investment in Mexico Faces Tariff Risks
Japanese automakers have invested approximately $18 billion in Mexico’s auto industry, attracted by low labor costs and access to the U.S. market. However, this investment is under threat due to proposed 25% U.S. tariffs on imports from Mexico and Canada. Companies like Nissan, Mazda, and Honda are reassessing their strategies, which could impact suppliers involved in cross-border trade and manufacturing. ft.com
3. Nissan Seeks Investors Amid Financial Struggles
Nissan is reportedly on the brink of collapse, seeking potential investors following failed merger discussions with Honda. Foxconn has emerged as a potential partner, proposing a four-way partnership involving Nissan, Honda, and Mitsubishi Motors. This development could lead to significant changes in supplier relationships and operational strategies.
4. Honda Open to Resuming Talks with Nissan Under New Leadership
Honda has expressed willingness to resume takeover discussions with Nissan, contingent upon the resignation of Nissan’s CEO, Makoto Uchida. The initial talks faltered due to disagreements over making Nissan a fully-owned subsidiary and restructuring its hybrid vehicle system. A potential merger could lead to significant changes in supplier relationships and operational strategies. ft.com
5. American Honda Offers Outlook on 2025 U.S. Automobile Business
American Honda has provided an outlook on its U.S. automobile business for 2025, following a 9% increase in sales in 2024, totaling 1.4 million units. The company expects the Honda brand to achieve sales of around 1.35 million units and the Acura brand targeting up to 160,000 units in 2025. This positive trajectory may present growth opportunities for suppliers aligned with Honda’s operations.
REGIONAL NEWS ITEMS
6. Ohio Manufacturers’ Association (OMA) Urges Action on Workforce Training Grants
The OMA issued a special bulletin reminding manufacturers to apply for the current round of Ohio TechCred grants before the March 31 deadline. These grants reimburse employers for upskilling employees in high-demand technical areas, including advanced manufacturing, robotics, and quality control processes — all highly relevant to Honda suppliers.
(ohiomfg.com)
7. Alabama Manufacturing Association Launches 2025 Apprenticeship Roundtable Series
Manufacture Alabama is hosting a series of roundtables across the state to help manufacturers design and implement effective apprenticeship programs. The first session, held February 20 in Huntsville, focused on strategies for attracting younger talent to automotive manufacturing roles.
(manufacturealabama.org)
8. U.S.-Mexico-Canada Agreement (USMCA) Compliance Update for Automotive Suppliers
The Canadian Manufacturers & Exporters (CME) and Auto Parts Manufacturers’ Association (APMA) released joint guidance on key USMCA rules impacting automotive suppliers in 2025, including updated origin verification procedures and record-keeping requirements. This update is especially important for Honda suppliers shipping parts across borders.
(cme-mec.ca)
(apma.ca)
9. Mexico’s Nuevo León Region Sees Record Automotive Investment
Nuevo León, home to many Honda and Tier 1 suppliers, reported record foreign direct investment in automotive projects for Q1 2025. Key drivers include proximity to U.S. markets, workforce availability, and improved infrastructure to support EV component production. Suppliers with operations in Mexico should be aware of shifting competition and potential partnership opportunities.
(mexico-now.com)
10. Carolina Regional Workforce Study Highlights Labor Shortages in Advanced Manufacturing
A new study released by the Carolinas Manufacturing Partnership highlights growing skills gaps in advanced manufacturing roles across North and South Carolina. The report recommends stronger partnerships between suppliers and regional community colleges to ensure training programs align with real-time industry needs.