Nissan and Honda Ink Memorandum of Understanding for Electric Vehicle Collaboration
Nissan Motor and Honda Motor are debating forming a strategic alliance to work together on developing essential parts for electric cars (EVs) and artificial intelligence for automotive software platforms.
As China’s BYD, Tesla, and other electric vehicle manufacturers pose a serious threat to Japanese automakers, the proposed alliance might aid the two rivals in achieving economies of scale in the production of EVs.
“Emerging players are very aggressive and are making inroads at incredible speed,” and “We cannot win the competition as long as we stick to conventional wisdom and traditional approach,”
Nissan chief executive officer (CEO) Makoto Uchida told a press briefing.
According to Honda President Toshihiro Mibe, the two businesses have signed a non-binding memorandum of understanding to explore possible areas of cooperation, although the extent has not yet been determined.
According to Uchida, the businesses are willing to collaborate in any area of Japan as well as abroad. He claimed that a possible combination between Nissan and Honda would not impact the company’s current commercial relationships with Renault and Mitsubishi Motors.
Nissan and Renault collaborate on EVs, mostly in Europe. Constructed in the same northern French facility as the new Renault Five, the next Nissan electric Micra will have the same architecture.
However, to allow for a more flexible relationship, the two companies this year narrowed the scope of their years-long alliance.
As a result, Renault has now negotiated agreements with additional partners, including China’s Geely.
According to Uchida, should the opportunity present itself, the companies would be willing to work with current partners. The businesses would look at cost-cutting strategies, according to Mibe, who also mentioned that higher production levels are necessary to achieve cost-effectiveness.
By 2040, Honda hopes to have 100% of its sales come from electric and fuel-cell vehicles. Although Nissan and Honda have not yet discussed a capital partnership, Mibe stated that they are not ruling out the idea in the future.
“We’re under a tight timeline and must act quickly,” he stated. “To secure a favorable stance by 2030, we need to make a decision immediately.”
