Japanese automakers Nissan, Honda, and Mitsubishi Motors have announced a partnership to share components for electric vehicles (EVs) and collaborate on software for autonomous driving. This move comes as a response to the rapidly changing auto industry, where electrification is becoming increasingly important.
Nissan and Honda initially announced their preliminary agreement in March, and after 100 days of negotiations, they realized the urgency of the situation. These Japanese automakers, who once dominated the era of gasoline engines, have fallen behind new players in the green car market, such as Tesla and China’s BYD.
Honda’s Chief Executive, Toshihiro Mibe, emphasized the need to adapt to these changes in order to survive in the industry. By partnering with Nissan, they acknowledge that trying to do everything on their own would not allow them to catch up. Instead, they plan to use the same batteries and adopt the same specifications for motors and inverters for EV axles. This collaboration will help achieve economies of scale, boost volume, and ultimately reduce costs.
Although both companies will continue to produce their own models, they will share resources in areas like components and software development. Honda and Nissan also expect to complement each other’s model lineups in various global markets, including both internal combustion engine vehicles and EVs. Additionally, they will explore energy services together in Japan. The details of these collaborations are still being worked out.
Mitsubishi Motors has joined the partnership, recognizing the importance of speed and size in responding to industry changes. However, Toyota, Japan’s top automaker, is not part of this collaboration.
Despite their different corporate cultures, Honda and Nissan have found common ground through discussions on working together. They both acknowledge the need for speed, as players like BYD are moving quickly in the market. However, they believe there is still time to catch up and remain competitive.
Overall, the partnership between Nissan, Honda, and Mitsubishi Motors aims to achieve greater efficiency, maximize resources, and keep up with the changing landscape of the auto industry. By joining forces, they hope to demonstrate that collaboration can yield results greater than the sum of their individual efforts.