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Nissan is studying the potential to import one or two Chinese-made models into Canada to soak up excess production capacity at its Dongfeng joint venture and drive sales and profitability.

The automaker is targeting low-cost vehicles for Canadian buyers, particularly an entry-level electric model suited to Quebec’s strong market for them, Nissan Americas Chairman Christian Meunier told Automotive News. Meunier declined to identify specific nameplates.

Nissan is evaluating the business case and could ship at least 3,000 to 4,000 vehicles annually to Canada from China to justify the investment.

The plan follows Canada’s January agreement to permit up to 49,000 China-made electric vehicles in 2026 at a 6.1 percent most-favored-nation tariff.

The import quota is set to increase by 6.5 percent annually starting next year. U.S.-built Nissans, by contrast, face a steep 25 percent reciprocal tariff to enter Canada, making Chinese production more attractive in terms of cost.

Mitsubishi’s U.S. dealership count has fallen 16 percent since before the pandemic as its sales slid roughly 20 percent.

Mitsubishi began 2026 with 56 fewer dealerships than it had in early 2019 — a bigger decline than any other mainstream brand except much larger Ford and Chevrolet, according to Automotive News. Its network shrank every year during that time except in 2024.

In the past 18 months, the company terminated about 35 franchises, CEO Mark Chaffin told Automotive News. He acknowledged the network could shrink further before it grows.

Mitsubishi now has 297 dealerships, averaging about 15 new-vehicle sales per month.

Several Mitsubishi dealers expressed frustration over onerous factory requirements, heavy reliance on fleet sales and limited incentive support for an aging product lineup.

The brand’s portfolio of three nameplates is skewed toward aging designs, primarily because the Outlander Sport is on a 15-year-old platform.

“It’s harder to compete with this lineup,“ Mitsubishi National Advisory Board Chairman R.C. Hill said. ”Dealer enthusiasm for the brand is fading."

Some retailers have voluntarily surrendered their franchises, liquidating inventory for thousands of dollars below invoice to quickly clear floorplan debt rather than wait out the typical three- to four-month termination process.

“They’re taking the bath and moving on,” a dealer said.

One Mitsubishi retailer said he acquired 14 2015 models for $7,000–to-$8,000 below invoice from a competitor shutting down. The dealer said the previous operator was selling just two new Mitsubishis a month versus 150 new vehicles from a different brand at his other store.

A dealer who recently closed a Mitsubishi store in the Midwest said he had “lost confidence” in the brand’s ability to deliver a competitive lineup and was “fed up” after losing money for several years.

Nationwide, average Mitsubishi dealership net profit as a percentage of sales is below 2 percent, a source said.

Many say the brand’s weak value proposition between new and used vehicles also makes business increasingly difficult.

Mitsubishi has some of the industry’s lowest residual values, with 1-year-old vehicles retaining just 69 percent of their original sticker price, according to Edmunds data.

Such a steep falloff “creates a major disadvantage for new inventory,” Edmunds analyst Ivan Drury said. “Consumers are easily swayed toward the more affordable used equivalent.”

American Honda planning chief Gary Robinson said hybrids will form the “core” of the company’s business and are expected to overtake pure gasoline vehicle sales late this decade.

However, the Honda and Acura brands will take different paths on the future of gasoline powertrains.

For the mainstream Honda brand, internal combustion engines will be an important means of maintaining competitive pricing, especially in entry-level segments. The company plans to offer next-generation variants on a case-by-case basis to protect market share.

In contrast, Acura is expected to move more aggressively toward near-universal hybridization, with gasoline-only models becoming a “lower priority,” Robinson told Automotive News.

Acura instead will use hybrid systems now under development to deliver added performance and a more engaging driving experience.

Honda will roll out new hybrid systems in the U.S. as early as 2028, with the next-generation of Acura’s RDX midsize crossover. The new architectures, which aim to be more efficient and cost-effective, will not feature entirely new combustion engines, but rather updates to existing ones.

Honda is developing an evolution of its current two-motor hybrid system for lighter compact and midsize vehicles, including the Civic, CR-V and Accord.

A more powerful V-6-based hybrid system with front electrification and rear electric motors for all-wheel-drive capability is planned for larger vehicles. This flexible, high-output architecture can support nameplates such as the Pilot, Passport, Odyssey, Ridgeline and MDX.

Nissan has slashed its exposure to Trump’s tariffs, cutting costs by $2.3 billion in its last fiscal year, Automotive News has learned. [Gift link attached]

This marks a 61 percent decrease from the $3.8 billion in tariff costs the automaker faced at the beginning of the business year on April 1, 2025.

To achieve this reduction, Nissan boosted U.S. production and focused on selling vehicles manufactured domestically.

The company anticipates further lowering its tariff burden to $1 billion or less in the current fiscal year, which concludes next March.

Key takeaways :

- A greater proportion of U.S. sales now comes from vehicles assembled in Tennessee and Mississippi.

- Reliance on imported parts, particularly from China, has decreased.

- Imported vehicles accounted for 35 percent of Nissan brand sales in the first quarter, down from 43 percent a year earlier.

- The majority of tariff savings are attributed to higher output of U.S.-built models such as the Rogue, Pathfinder, and Frontier.

- Domestic production of U.S. sales volume increased by a third to 60 percent in fiscal 2025.

“Building where you sell eliminates many risks — tariffs, currency swings and supply chain issues,” Nissan Americas Chairman Christian Meunier said. “For our most important market, maximizing U.S. production is critical.”

Honda is considering bringing all-wheel-drive to the next generation Odyssey, which is now not expected until early 2030.

The Odyssey, which has had two midcycle updates since its last redesign in 2017, will see its run extended at least three more years, with the next-generation hybrid model now targeted for March 2030, according to a supplier memo reviewed by Automotive News.

Honda had considered temporarily dropping the minivan but decided against it to keep customers from defecting to rivals, people briefed on the plans said. 

In the minivan segment, where Honda holds strong retail share with the Odyssey, concerns about the aging models are particularly acute.

Some retailers worry the front-wheel-drive van will lose ground to the newer Toyota Sienna, which offers awd, as Honda’s model continues to age.

“Honda has been selling Odyssey forever with front-wheel drive,” a dealer said. “But some people dismiss the Odyssey because it’s not all-wheel drive.”

Honda is stretching the life cycles of several high-volume models — in some cases to more than a decade — as it takes a $15.8 billion hit in pivoting from its ambitious electric vehicle plan.

Honda is squeezing more cash from proven platforms while developing more efficient hybrid powertrains to drive future growth.

Honda, in a supplier memo reviewed by Automotive News, said it will extend production of the Odyssey, Accord and HR-V, as well as the Acura MDX and Integra. Next-generation models of all five nameplates will not arrive until the end of the decade at the earliest, according to the memo.

The Odyssey, last redesigned in 2017, will see its run extended at least three more years, with the next-generation hybrid model now targeted for March 2030. Honda had considered temporarily dropping the minivan but decided against it to keep customers from defecting to rivals, people briefed on the plans said.

The Accord could go hybrid-only after a redesign by early 2030. Production of the midsize sedan’s gasoline-only version is extended a year through March 2030, with no next generation listed in the supplier document.

The HR-V’s life cycle will stretch to a decade, with production being extended at least two years. A redesign of the subcompact crossover now is expected by early 2032.

Production of the Acura Integra compact sedan will run through March 2032 — three additional years — with no next generation disclosed.

The three-row MDX crossover is on track for a roughly 10-year life cycle before its next generation arrives by early 2031.