Nissan and Honda have finally confirmed their plans to work together on electric vehicle development following recent reports about their premature discussions. The move is clearly part of the two Japanese legacy automakers’ strategy to catch up with industry leaders Tesla and BYD.
Initial speculation
EV-a2z recently reported on the ongoing talks between Nissan and Honda regarding a potential partnership to produce lower-cost electric vehicles to compete in the rapidly growing market.
The two Japanese automakers are apparently considering a “joint procurement and development” to reduce production costs, Nikkei Asia reports, citing “sources at Nissan.” It can also cover the joint development of a shared electric vehicle platform. However, the discussions between Nissan and Honda are still in the early stages.
Confirmed: Nissan and Honda to launch feasibility study of strategic partnership
In a significant development, Nissan and Honda officially confirmed the speculations about their plans to partner yesterday. According to the press release, the two Japanese automakers inked a memorandum of understanding to initiate a feasibility study of a strategic partnership to advance electric vehicle and software development.
They aim to explore and develop new software platforms, components, and other relevant technologies.
Nissan’s President and Chief Executive commented on this new partnership with Honda.
“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. We look forward to further discussions and aim to find win-wins for sustainable growth.”
Makoto Uchida, Nissan President and CEO
The President and Representative Executive Officer of Honda also expressed his delight with this significant event.
“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.”
Toshihiro Mibe, Honda’s Director, President and Representative Executive Officer
Significance
Nissan and Honda’s partnership will undoubtedly help them catch up in the global electric vehicle market after rapidly falling behind electric automakers like Tesla and BYD.
After pioneering the electric vehicle market with the Leaf EV in 2010, Nissan has since lagged behind the race. Meanwhile, Honda has yet to launch its first electric SUV Prologue in US dealerships this month.
All that said, the partnership can enable them to produce lower-cost electric vehicle models, which would attract more customers and steal market share from cheaper Chinese-made EVs.
