The rise of Tesla and car manufacturers Chinese emerging companies are a real threat to established manufacturers, who are behind in the development of electric vehicles. This is precisely what the CEOs of Nissan and Honda have admitted, who increasingly believe it is necessary for them to combine forces to avoid being swallowed up. In this sense, the two manufacturers admitted to having signed an agreement to evaluate the possibility of uniting to make the development of electric vehicles more profitable.
The two manufacturers are very little advanced in the race for electric vehicles, started by several manufacturers such as GM, BMW, Ford and Mercedes-Benz. For now, Nissan only produces the Ariya and the aging LEAF, while Honda is preparing to sell a GM product prepared with its sauce, the Prologue.
To better tackle electrification, the idea would not be to develop joint products whose only difference would be an appearance corresponding to a specific brand. Rather, the feasibility study concerns the possibility of producing electric motors, battery technologies and other parts involved in the assembly of electric vehicles. Thus, the two brands could share parts, which would induce economies of scale.
In a joint statement, the two companies stated that they had come to the conclusion that, depending on the situation, it was time to see what possibilities for collaboration for future products. According to the press release, Honda and Nissan are at the same place and face the same challenges, which makes it logical to study the feasibility of a union.
The CEOs of the two companies did not venture to assess the potential savings, nor what the future objectives are in connection with the unveiling of new electrical products. Currently, the two manufacturers combined sell a total of 7.65 million vehicles sold annually.
Although the timeline for this study has not yet been announced, Honda CEO Toshihiro Mibe was very clear during an interview with Automotive News : “By 2030, we must be among the dynamic, in a position to compete with the best. »
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Honda responded a few years ago by establishing a partnership with GM, which has since been canceled. Now, the Japanese giant Honda is considering an association with Nissan, in order to arrive with its own electric vehicle in 2026. For its part, Nissan already had a head start in 2012 with the LEAF, but did not put in the effort necessary to continue this electrification momentum.
These manufacturers have not taken competitors’ electrification efforts seriously, and they now face a significant challenge. Unions of this kind, even if they are rather unusual, are increasingly necessary to allow these builders to keep their heads above water. If this can increase competition in the field of electric vehicles, it can only be beneficial for the consumer.
