Honda and Nissan have recently announced their partnership in the areas of electrification and software, aiming to join forces to better compete in the automotive industry. Now, Mitsubishi has decided to join this strategic alliance in order to be a part of this collaboration.
The initial plans for this partnership were revealed back in March, and it was still in the feasibility study stage at that time. However, a recent report by Japan’s Nikkei newspaper mentioned that Mitsubishi will now be working with Honda and Nissan to finalize the details of the partnership, with a specific focus on standardizing in-vehicle software systems.
A memorandum of understanding has been signed by the three automakers to jointly explore potential collaboration opportunities, with a main emphasis on electrification and software development for vehicles. By having Mitsubishi on board, the partnership is expected to create more synergies and business prospects compared to if it were solely between Honda and Nissan.
This move will essentially create two dominant automotive groups in Japan, with one led by Toyota and its affiliated brands, and the other formed by the alliance between Honda, Nissan, and Mitsubishi. Together, these two groups managed to sell over 19 million vehicles last year, positioning themselves as strong competitors in the market.
It’s worth noting that Mitsubishi and Nissan already have a close relationship, as both companies are part of the Renault Nissan Mitsubishi Alliance and share platforms and EV technology. Additionally, a significant portion of Mitsubishi’s shares is owned by Nissan, further solidifying their connection.
Moreover, Mitsubishi and Honda have also previously collaborated on a battery leasing joint venture company called Altna, indicating a history of working together in the industry. This new partnership with Honda and Nissan will likely strengthen their ties and lead to further advancements in the field of electrification and software development for vehicles.
As Japanese automakers strive to catch up with their foreign competitors in the EV market, collaborations and alliances like these become crucial for their success. The rise of Chinese EV brands and China’s dominance as the world’s largest exporter of vehicles have put pressure on Japanese companies to innovate and adapt to the changing landscape of the industry.
In a similar vein, Toyota, Mazda, and Subaru have also recently joined forces to develop a new generation of internal-combustion engines, showcasing the trend of partnerships and collaborations within the automotive sector. These strategic alliances not only help companies stay competitive but also drive innovation and technological advancements in the industry as a whole.
