Nissan and Honda Announce Strategic Partnership in Electric Cars and Beyond

Japanese car manufacturers Nissan and Honda have officially confirmed plans for a strategic partnership focused on electric cars and other key areas. The manufacturers’ intention to collaborate had been previously leaked, generating widespread industry interest.

Honda’s official announcement stated that both companies have signed a letter of intent “to strengthen environmental and electrification technologies as well as software development.” The agreement underscores the necessity for industry players to pool resources and explore avenues for future cooperation.

Makoto Uchida, Nissan’s President and CEO, emphasized the need to anticipate the rapid changes in mobility, stating, “It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges.” Uchida expressed Nissan’s commitment to further discussions and its pursuit of mutually beneficial outcomes for sustainable growth.

Toshihiro Mibe, Honda’s Director and President, highlighted the unique opportunity presented by the evolving automotive landscape, stating, “In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda. Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”

The partnership discussions between Nissan and Honda were initially leaked, with reports from TV Tokyo and Nikkei Asia suggesting collaboration in unspecified fields. Nikkei reported that the alliance could focus on electric vehicles, positioning the companies to better compete with Chinese rivals.

Recent reports indicate that Nissan and Honda are planning significant reductions in their production capacities in China, attributed to challenges in keeping pace with Chinese competitors in the electric car segment. However, both companies clarified that this would be a reduction in production capacity only, with no plans for a (partial) sale of shares in their respective China joint ventures.

Nikkei also reported that the collaboration could include a joint powertrain, joint procurement, and the development of a joint platform. Furthermore, the partnership may extend to the procurement of batteries and the joint development of electric vehicles.

Despite their collaboration, Nissan remains committed to its alliance with Renault, particularly in the electric vehicle market in Europe. Nissan’s upcoming electric Micra will share a platform with the recently unveiled Renault 5, highlighting the depth of their partnership. However, both sides have recently expanded their partnerships, with Renault also cooperating with new partners like Geely.

The strategic partnership between Nissan and Honda marks a significant step forward in the automotive industry, demonstrating a commitment to innovation and collaboration in addressing the challenges of an evolving mobility landscape.