BY Busola Aro
Two Japanese auto giants, Nissan and Honda, have announced that they are studying the possibility of a partnership that is focused on electric vehicles (EVs).
The companies made the announcement in a joint statement on Friday.
According to the statement, the companies’ partnership will focus on technology that helps accelerate efforts towards “carbon neutrality and zero traffic-accident fatalities”.
The firms said the scope of the feasibility study includes automotive software platforms, core components related to EVs, and complementary products.
“To further accelerate efforts toward carbon neutrality and zero traffic-accident fatalities, it will be essential to strengthen environmental and electrification technologies as well as software development,” the statement reads.
“The two companies have reached the understanding based on the belief that it is necessary to combine their strengths and explore the possibility of future collaboration.”
Speaking on the partnership, Makoto Uchida, Nissan’s chief executive officer (CEO) and president, said the partnership is important to prepare for the increasing pace of transformation in mobility in the mid-to-long term.
“It is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges,” Uchida said.
“We are not competing only with the traditional car makers, but also with new players.
“These emerging brands with innovative products and new business models are making inroads into the auto market and are trying to gain dominance by capitalising on their overwhelming price competitiveness and amazing speed.
“We cannot win the competition as long as we stick to conventional wisdom and traditional approach.
“We look forward to further discussions and aim to find win-wins for sustainable growth.”
On his part, Toshihiro Mibe, Honda president, said there is a “once-in-a-century transformation in the automotive industry.”
“Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry,” he said.
Mibe also said both companies would explore cost-cutting measures, adding that achieving cost-effectiveness requires greater production levels.
In 2021, Honda had said it was targeting sales of 100 percent zero-emission electrified vehicles especially in North America by 2040.
The company seeks to increase the ratio of battery-electric (EV) and fuel cell electric (FCV) vehicles within overall unit sales combined to 40 percent by 2030 globally, 80 percent in 2035 and 100 percent by 2050.
Chinese automakers account for more than 50 percent of the global market for EVs.
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