Honda, Nissan and Mitsubishi: Alliance for smart EV takes shape

Building on their memorandum of understanding signed in March, Honda and Nissan have agreed to develop a joint platform for next-generation software-defined vehicles. The two Japanese carmakers intend to complete the basic research in about a year and consider the possibility of mass production based on the results. At the same time, Honda confirms Mitsubishi’s recently leaked intention to join the alliance. The background to this in a moment.

The partners’ current statements outline a comprehensive alliance in the fields of batteries, electric axle drives (e-axles), vehicle portfolio and energy services. In the battery sector, Nissan and Honda want to examine the merging of their battery technologies and systems and standardise the specifications of their battery cell modules in the medium to long term so that they can be used in electric vehicles from either brand. The duo will also explore the supply of batteries to Nissan by L-H Battery Company, a joint venture between Honda and LG Energy Solution. The deal would cover a time horizon after 2028 in North America.

“Bringing together the battery technologies and assets of both companies will enable offering a wide range of battery options, from high-output to low-cost models, as well as cost reduction effects through investment diversification and risk-hedging, and deliver the advantage of volume,” Honda and Nissan said about the considerations.

Joining forces on a broad front

The alliance will also focus on e-axles. In the medium to long term, they also want to standardise the specifications of their respective e-axles. The aim is to share motors and inverters as a first step. Nissan and Honda also want to look into complementing each other’s portfolios for both electric and combustion models. In the short term, both sides have already reached a fundamental agreement on models and regions that are to be supplemented by both companies. As a final point of the cooperation, the duo will be providing energy services in Japan, including charging infrastructure as well as battery and charging services.

In parallel, it is now official that Mitsubishi will join the alliance as a third force. Makoto Uchida, President and CEO of Nissan, said: “We are very pleased to welcome a new member to the strategic partnership between Honda and Nissan. Mitsubishi Motors has unique technologies and expertise and has been collaborating with Nissan as a partner. Through collaboration among the three companies, we expect the partnership to evolve into something that creates greater value, and to deliver unique products and services from each company that meet the diverse needs of customers.”

“Automobile industry is in a period of transformation said to occur once in a century”

According to Honda President Toshihiro Mibe, the automotive industry is undergoing a once-in-a-century transformation. “We expect that the combination of technologies and knowledge cultivated by Nissan and Honda, as well as the strength and experience of Mitsubishi Motors, will enable us to more quickly resolve various issues related to electrification and intelligence on a global scale, and help lead societal reforms as a top runner.”

Takao Kato, President and CEO of Mitsubishi Motors, commented: “Nissan and Honda’s discussions on a possible partnership have progressed, and we have decided to participate in this framework. Collaboration with partners is essential in today’s automotive industry, which is undergoing rapid changes due to technological innovations such as electrification and intelligence. We believe that we can discover new possibilities in a variety of fields through collaboration among the three companies.”

The Japanese daily Nikkei had already reported earlier this week that Mitsubishi Motors was joining the Honda-Nissan alliance as a third force. This will divide the Japanese market into two large camps – with Toyota on one side and the Honda-Nissan-Mitsubishi alliance on the other.

The background to this consolidation phase is the upheaval in the automotive industry: Japanese car manufacturers are unable to keep up with Chinese manufacturers and newcomers such as Tesla when it comes to electromobility. In order to cope with the enormous investments in new drive and digitalisation technologies, Japanese competitors are now forming alliances. In this context, Toyota had already brought the smaller manufacturers Daihatsu, Suzuki, Subaru, Mazda and Hino Motors on board in 2018.

Nissan and Honda struggle with Chinese market

The fact that Mitsubishi is now joining Honda and Nissan comes as no surprise, as Nissan holds a 34 per cent stake in the car manufacturer. The two manufacturers already work side by side in the Renault-Nissan-Mitsubishi alliance. When the plans were presented in March, the reason given for the cooperation between competitors was that it had been agreed that it was necessary to combine strengths and examine the possibilities of future collaboration. Shortly before this, it had become known that Nissan and Honda were planning to significantly reduce their production capacities in China because they were having difficulties keeping up with Chinese competitors in the race for electric cars. However, this is said to only involve a reduction in production capacity and not a (partial) sale of shares in the respective China joint ventures.

Incidentally, Nissan is actually firmly on Renault’s side when it comes to electric cars, especially in Europe. The next electric Micra from Nissan will be based on the same platform as the recently unveiled Renault 5. However, both sides loosened their alliance somewhat in 2023, when Renault started cooperating with new partners, such as Geely.

global.honda, global.nissannews.com, global.honda (Mitsubishi)