Plans to build a $1bn battery plant in southern Japan have been shelved due to the "tough business environment", the company said. Ratings agencies meanwhile have downgraded Nissan to junk status, with Moody's citing "weak profitability" and "ageing model portfolio". The carmaker's shares have plummeted nearly 40% over the past year. Unlike Honda, Nissan is expected to be more severely impacted by the new tariffs. "Nissan's customers are historically more price-sensitive," noted Bloomberg's Yoshida in speaking to AFP. "They can't pass the costs on to consumers to the same extent as Toyota or Honda without suffering a significant loss in sales units." A much-speculated merger between Honda and Nissan had been seen as a potential stabilising move but collapsed in February, reportedly after Honda proposed making Nissan a subsidiary – an idea Nissan rejected.