Key Takeaways
- Honda and Nissan join forces to explore electric vehicle development, potentially sharing technology and components to meet carbon neutrality goals.
- Feasibility study may lead to a long-term partnership as each side seeks to reduce costs and create superior electric vehicles.
- Collaborative efforts between automakers aim to compete with cheap Chinese imports by combining knowledge and resources.
Following rumors of a tie-up, Nissan and Honda have formally announced that they will conduct a feasibility study to look into the viability of developing electric vehicles and other technologies together.
The Japanese manufacturers have said that they will combine their strengths and potentially work on technology to further their respective carbon neutrality goals and reach zero traffic fatalities. The feasibility study will initially look into EV components, automotive software platforms, and related products.
Neither automaker has stipulated what sort of potential vehicles may come from this exploratory agreement, but Nissan insiders said last week that the duo may jointly procure batteries from suppliers and develop a low-cost electric car to fight the rise of cheap Chinese imports.
Feasibility Study Could Blossom Into Future Partnership
Both the CEOs of Nissan and Honda agreed that the forthcoming electric revolution is the ideal time for collaboration between brands, as it would further both automakers, reduce costs, and result in superior vehicles for consumers.
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Nissan’s president and chief executive, Makoto Uchida, said, “It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long term.” In contrast, Honda director and president Toshihiro Mibe said, “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.”
Honda and Nissan aren’t the only automakers said to be exploring a partnership for the electric era. EV startup Fisker is looking for investment from a mainstream automaker, for example, while Volkswagen may tap Renault for assistance in building small and affordable EVs.
Other Automakers Are Looking At Potential Partnerships
The common reason behind these collaborative efforts has to do with cheap Chinese imports, many of which Western automakers cannot compete with on price. While many have proposed tariffs on Chinese-built electric cars, Stellantis CEO Carlos Tavares doesn’t think this would work. Instead, the chief executive is looking into building cars with Chinese-sourced components and technology.
Honda initially had plans to co-develop budget-friendly electric vehicles with General Motors but canceled these plans due to changes within the business environment. The new Prologue SUV was co-developed with GM and features Ultium batteries and technology. Likewise, the premium Acura ZDX is underpinned by the same architecture.
