Alliance of Japan's 3 Car Companies... Mitsubishi to Collaborate with Honda and Nissan

Nihon Keizai Reports "Confidentiality Agreement Signed and Consulted"
Honda-Nissan Signed Memorandum of Understanding for Collaboration Last March

Japanese automakers Honda and Nissan are set to be joined by Mitsubishi Motors in their alliance, Nikkei reported on the 28th. Honda and Nissan signed a memorandum of understanding for collaboration last March.

[Image source=AFP Yonhap News]

According to the report, Mitsubishi Motors is in talks with Honda and Nissan under a confidentiality agreement. The total vehicle sales of these three companies in the last fiscal year amounted to approximately 8.33 million units.

Nihon Keizai stated that as the electric vehicle market expands and American company Tesla and Chinese electric vehicle manufacturers extend their reach, these three automakers are seeking to enhance their competitiveness through collaboration amid shifting market shares. They plan to standardize the software that controls vehicles and discuss producing vehicles through an original equipment manufacturer (OEM) approach, given that each has competitive models in different segments.

The report of Mitsubishi’s joining comes four months after Honda, Japan’s second-largest automaker, and Nissan, the third-largest, signed a memorandum of understanding for comprehensive collaboration. Honda and Nissan are reportedly exploring joint development of key components that determine electric vehicle performance and co-designing the software installed in their vehicles.

Meanwhile, Toyota Motor, Japan’s largest automaker, has been cooperating in finished vehicle supply and technology development with its subsidiary Daihatsu Motor, as well as Subaru, Mazda, and Suzuki. The combined annual sales of these four companies total approximately 16 million units.