Electric Vehicle-Hasty Japanese Companies... Honda and Nissan Join Forces

Joint Development of Electric Vehicle Parts and Vehicle Software
"No Change in Capital Relationship"
Possible Shift in Competitive Landscape of Japanese Automotive Industry

Uchida Makoto, President of Nissan Motor Co. (left), and Mibe Toshihiro, President of Honda, attending a press conference held in Tokyo on the 15th.
[Image source=AP Yonhap News]

Honda and Nissan, the second and third largest automakers in Japan, are joining forces to secure competitiveness in electric vehicles.

On the 15th, Japan's Nihon Keizai Shimbun (Nikkei) and public broadcaster NHK reported that Honda and Nissan signed a memorandum of understanding to consider strategic collaboration for comprehensive cooperation.

Accordingly, the two companies are expected to jointly develop key electric vehicle components and design in-vehicle software together. They also plan to explore cooperation in finished vehicle supply. However, both companies drew a line by stating that there will be no changes such as exchanging capital.

At a press conference held in Tokyo on the same day, Makoto Uchida, President of Nissan, explained the background of the collaboration, saying, "The speed of market change has shifted due to the participation of emerging forces." Toshihiro Mibe, President of Honda, also admitted, "We cannot compete in the future electric vehicle market with the strengths gained from producing gasoline vehicles."

Japan's Toyota, the world's number one automaker, has continued cooperation in finished vehicle supply and technology development with subsidiaries such as Daihatsu Motor, as well as Subaru, Mazda, and Suzuki. However, Honda has long pursued an independent path. Nissan has only partnered with Mitsubishi Motors within Japan.

This collaboration could potentially change the competitive landscape of the Japanese automotive industry, which has been led by Toyota. Nikkei predicted, "The Japanese automotive industry has been slower to transition to electric vehicles compared to Chinese, American, and European companies," and added, "The cooperation between Japan's second and third largest automakers could serve as a catalyst for structural transformation in the Japanese automotive industry."