Honda and Nissan Motor Co., Japan’s second and third-largest automakers after Toyota Motor Corp., have decided to consider cooperation in electric vehicles and vehicle software, the Nihon Keizai Shimbun (Nikkei) and local public broadcaster NHK reported on the 15th.
According to reports, Honda and Nissan signed a memorandum on the same day stating that they would begin reviewing strategic partnerships for comprehensive collaboration.
The two companies are expected to discuss ways to jointly develop major components that determine the performance of electric vehicles and design software to be installed in vehicles together.
In addition, the two companies decided to seek ways to cooperate in supplying finished cars.
At a press conference in Tokyo, Nissan President Makoto Uchida explained why he decided to collaborate with Honda, saying, “The speed at which the market changes has changed with the participation of emerging forces and others.”
Honda President Toshihiro Mibe said the strength he secured from producing gasoline vehicles could not fight in the future electric vehicle competition.
However, the two companies drew a line that they would not change capital relations further than technical cooperation.
Toyota, the world’s No. 1 finished car maker, has been cooperating with its subsidiary Daihatsu Industries, Subaru, Mazda, and Suzuki in supplying finished cars and developing technologies.
Honda, however, has been taking its own route for a long time, and Nissan has only cooperated with Mitsubishi Motors in Japan.
The Asahi Shimbun pointed out, “With this collaboration, Honda has clarified its stance toward Nissan.”
NHK said, “Honda is strong in the North American market and Nissan has a production base in Europe, so the two companies are in a complementary relationship,” adding, “There is a possibility that the competitive structure of the Japanese automobile industry, which can be called the ‘Toyota 1st Round’, will change.”
Nikkei also predicted, “The Japanese automobile industry is slower to switch to electric vehicles than Chinese, U.S., and European companies,” adding, “The promotion of cooperation between Japan’s second and third largest companies could trigger a shift in the structure of the Japanese automobile industry.”
SOPHIA KIM
US ASIA JOURNAL
