Mitsubishi Motors has signed a nondisclosure agreement with Honda and Nissan, marking the beginning of discussions to join their automotive alliance. The collaboration will focus on software development and may extend to vehicle development.
According to the Japanese business publication Nikkei, Mitsubishi is set to become a part of the alliance announced in March between Nissan and Honda. The primary goal of the partnership is to jointly develop software to reduce costs and enhance competitiveness in the electromobility sector.
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Nissan currently holds a 34.01% stake in Mitsubishi. With the NDA in place, Mitsubishi is now negotiating with both Honda and Nissan. Honda and Nissan, the second and third largest automakers in Japan, respectively, reported global sales of 4.1 million and 3.44 million units for the fiscal year ending March 2024. Adding Mitsubishi’s 810,000 units would bring the group’s total sales to 8.35 million vehicles.
The initial focus of the alliance will be on standardizing in-vehicle software. Nissan and Honda plan to jointly develop basic software, which will be evaluated for use in Mitsubishi Motors vehicles.
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Discussions are also underway regarding potential collaboration in vehicle production. Honda does not currently produce plug-in hybrids or pick-ups in Japan, segments where Mitsubishi has a strong market presence.
Nikkei highlighted the rationale behind the collaboration: “In 2023, Nissan and Honda sold only 140,000 and 19,000 EVs worldwide, respectively, while Tesla and BYD were far ahead with 1.8 million and 1.57 million units, respectively.” The report also noted challenges in the Chinese market, where local manufacturers are more competitive on price.
The potential partnership recalls a previous international alliance with Renault, which ultimately turned out to be smaller than initially planned.
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