Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Nissan and Honda consider partnership on EVs, AI

by Staff GBAF Publications Ltd
0 comment

Nissan and Honda consider partnership on EVs, AI

By Maki Shiraki

TOKYO (Reuters) -Nissan Motor and Honda Motor are considering a strategic partnership to collaborate on producing key components for electric vehicles (EVs) and artificial intelligence in automotive software platforms, the companies said today.

The potential partnership could help the two rivals develop economies of scale in producing EVs, which is crucial for Japanese automakers as they face heavy competition from China’s BYD, Tesla and other electric vehicle makers.

“Emerging players are very aggressive and are making inroads at incredible speed,” Nissan chief executive officer (CEO) Makoto Uchida told a press briefing.

“We cannot win the competition as long as we stick to conventional wisdom and traditional approach,” he said.

The two companies signed a non-binding memorandum of understanding to look at areas of potential collaboration but are yet to determine the scope, Honda president Toshihiro Mibe said.

The companies are open to working together in any region, both in Japan and overseas, Uchida said.

Nissan has existing business alliances with Renault and Mitsubishi Motors, but these will not be affected by a potential alliance with Honda, he said.

Nissan cooperates with Renault on EVs, mainly in Europe. The next Nissan electric Micra will share the same architecture as the new Renault Five and be built in the same plant in northern France.

But the two firms last year reduced the scope of a years-long alliance to allow for a more agile partnership, and Renault has since signed agreements with new partners such as China’s Geely.

Uchida said that the companies were open to collaboration with existing partners should opportunities arise.

The companies will explore cost-cutting measures, Mibe said, adding that achieving cost-effectiveness requires greater production levels.

Honda is aiming to increase its ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040.

Nissan and Honda are yet to discuss a capital tie-up, but they are open to the possibility in the future, Mibe said.

“We are strapped for time and need to be speedy,” he said. “In 2030 to be in a good position we need a decision now.”

Nissan’s pursuit of a partnership was first reported by TV Tokyo. The Nikkei newspaper has reported specific measures could include the introduction of a common powertrain, joint procurement and the development of a common platform.

(Reporting by Maki Shiraki; Writing by Makiko Yamazaki and Anton Bridge; Additional reporting by Kantaro Komiya and Satoshi Sugiyama; Editing by Himani Sarkar, Michael Perry and Lincoln Feast.)