In a bid to stay competitive in an increasingly electrified auto industry, Japanese automakers Honda and Nissan are contemplating potential collaboration focused on crucial areas such as mechanical components, electric vehicle (EV) parts, and automotive software. This announcement, which took the form of a memorandum of understanding for a feasibility study, comes in the face of rising competition from frontrunners like Tesla and emerging Chinese manufacturers in the EV industry.
Potential Powerhouse Partnership
Honda and Nissan each bring distinct advantages to the table, combining their respective strengths could create a formidable force in the EV race. Both companies have recognized the necessity of their potential synergy in order to forge a way forward. Making significant strides within EV technology, including electric motors and battery technologies, could benefit their standing within a highly competitive industry.
Competitive Crusade
In this rapidly evolving marketplace, complacency can be the death of brands. Relinquishing any space to competitors could lead to a company fading into irrelevance. Survival is key and in order to stay afloat, this potential partnership is essentially a vehicle to boost the scale and cost-efficiency in EV component production, thereby accelerating the electrification process.
Racing Against Titans
Being in fighting shape against EV market leaders, such as Tesla, by 2030 is a significant priority for Honda, as outlined by their CEO. Along similar lines, Nissan’s CEO stated the urgent requirement of enhancing the efficiency of the supply base to support acceleration of EV technology development.
Expansion Plans
Honda is currently working on its first dedicated EV, the Prologue, which is a product resulting from a previous collaboration with General Motors. The company has also revealed plans of launching a sedan by 2026. On the other hand, Nissan is already selling two EVs in the USA – the Ariya crossover and the older Leaf model.
Need for Speed
The automotive industry’s shift towards electrification is on an upward trajectory with increasing pace. To stay in the game, automakers Honda and Nissan are looking into joining forces to kickstart their EV journey. This strategic move could ensure their survival in a market in which they are currently lagging, reinvigorating their places within the industry.
This potential partnership—still in a theoretical stage and largely shrouded in uncertainty—could bring forth radical changes within the EV industry. Substantial reductions in production costs, coupled with the achievement of scale, could boost the availability and adoption of EV technology, benefiting consumers and the environment alike. Only time will tell how this collaboration will unfold and the potential impact it will have on the electrified automotive industry.