Mitsubishi Motors is gearing up to join the groundbreaking alliance of the second- and third-largest Japanese automakers, Honda Motor and Nissan Motor, to challenge other auto giants.
What’s currently known about the partnership?
Mitsubishi Motors will add to the existing partnership of Honda and Nissan, establishing an alliance among legacy automakers with cumulative sales of 8 million+ units, Nikkei reported.
Mitsubishi, 34% owned by Nissan, has yet to discuss the final terms of this strategic alliance with Honda and Nissan.
However, the report claimed that these three Japanese automakers plan to standardize in-vehicle software that controls cars.
Countering growing competition from Chinese and American players
The news comes as these three Japanese automakers’ market shares constantly decline amid the ongoing shift to electric vehicles.
For instance, Nissan continues to lose ground in its two key markets – the United States and China. It recently reduced its annual outlook after launching aggressive price cuts that nearly depleted its Q1 2024 profit.
In March, Nissan and Honda announced plans to co-develop electric vehicle components and artificial intelligence (AI) in automotive software platforms.
A new partnership between Nissan, Honda, and Mitsubishi Motors could significantly aid them in cutting costs and remaining competitive in the rapidly growing electric vehicle market, currently led by the likes of China’s BYD and America’s Tesla.
Mitsubishi reportedly declined to comment on the news, while a Nissan spokesperson only said it was not based on something either of the companies had declared. Spokespeople for Honda did not also respond to a request for comment.
Excitingly, the reported strategic alliance will consolidate the Japanese automotive market into two major forces: the Toyota Motor Group and the Honda-Nissan-Mitsubishi alliance.
