What began as a rumor at the week’s start is now confirmed. The Honda-Nissan alliance, announced in March, is expanding to welcome Mitsubishi, another Japanese automaker. The three companies have signed a memorandum of understanding to explore joint efforts in electric vehicles and software development.
Takao Kato, Representative Executive Officer, President, and CEO of Mitsubishi Motors, commented: “The discussions between Nissan and Honda regarding a potential partnership have advanced, and we have chosen to join this initiative. In today’s rapidly evolving automotive industry, driven by technological advancements such as electrification and intelligence, collaboration with partners is crucial. We believe that our combined efforts will unlock new possibilities across various fields.”
In related developments, the Honda-Nissan alliance released a separate press statement highlighting their agreement to collaborate on software-defined vehicles (SDVs). This partnership will focus on enhancing autonomous driving technology, connectivity, and artificial intelligence by pooling resources into software development. Additionally, they will work together on new batteries and electrically driven axles, sharing motors and inverters.
Interestingly, the Honda-Nissan alliance has also agreed to share vehicle models to complement each other’s lineups, including both combustion engine cars and electric vehicles. With Mitsubishi recently signing the MoU, it is too early to determine if it will officially join this strategy, known as “mutual vehicle complementation.” It’s notable that Nissan holds a 34 percent stake in Mitsubishi.
The expanded Honda-Nissan alliance is logical considering the rapid emergence of electric vehicles from China. Instead of independently tackling the challenges—a process both time-consuming and expensive—the three companies are uniting to speed up development and achieve cost efficiencies. Honda, Nissan, and Mitsubishi are facing increasing competition as Chinese electric cars are more affordable and varied.
Will this broadened partnership yield exciting outcomes? It appears unlikely at this moment. Unfortunately, there is no mention of a sports car similar to the successful Toyota and Subaru collaboration on the GR86/BRZ. The harsh reality is that mainstream vehicles, particularly crossovers and SUVs, are more profitable.
This isn’t the first major alliance among Japanese automakers announced this year. A few months ago, Toyota, Mazda, and Subaru held a joint conference to reaffirm their commitment to combustion engines. Their goal is to extend the lifespan of internal combustion engines through hybridization and carbon-neutral fuels. Toyota is developing several inline-four engines, Mazda is enhancing the rotary engine for range-extending EVs, and Subaru is working to make its horizontally opposed boxer engine run cleaner.
