Potential Collaboration Between Nissan and Honda for Affordable Electric Vehicles

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Nissan Motor is exploring the possibility of establishing a business collaboration with Honda Motor to jointly develop crucial components for electric vehicles, according to three individuals familiar with the matter at Nissan.

The envisaged partnership with domestic competitor Honda aims to bolster Nissan’s economies of scale, a strategic imperative for Japanese automakers contending with fierce competition from prominent players like China’s BYD and Tesla, among others, in the electric vehicle segment.

While the sources, preferring anonymity as the matter remains confidential, disclosed that formal discussions between Nissan and Honda have yet to commence, the exact scope of the potential collaboration remains undetermined.

One source revealed that the notion of collaboration originated from discussions among the companies’ chief executives.

Besides cooperation on key components for electric vehicles, Nissan is contemplating collaboration with Honda on “kei car” models—compact vehicles tailored for the domestic market, known for their boxy design and lower power output.

While the prospective partnership may extend to international ventures, this could impact Honda’s existing collaboration with General Motors, according to insights from two of the sources.

Reports of Nissan’s interest in seeking a partnership were initially circulated by TV Tokyo, although a Nissan spokesperson declined to provide any comment on the matter. Similarly, a spokesperson from Honda cited the inability to offer any statement.

A source at Honda acknowledged that a potential collaboration with Nissan is among several possibilities under consideration by the company. However, numerous issues require resolution before advancing any new partnerships.

Honda has set ambitious goals, aiming for electric vehicles and fuel cell vehicles to comprise 100% of its sales by 2040.

While Nissan already collaborates with Renault on electric vehicles, primarily in the European market, the upcoming Nissan electric Micra is slated to share the same platform as the new Renault Five and will be manufactured at the same facility in northern France.

Moreover, Nissan has pledged investments of up to 600 million euros ($652.50 million) in Renault’s recently established electric vehicle subsidiary, Ampere.

However, last year witnessed a reduction in the scope of the longstanding alliance between Nissan and Renault to facilitate a more agile partnership. Consequently, Renault has forged new agreements with partners such as China’s Geely.

Also read: Nissan GT-R: Enduring Legacy & Rare Track Edition Unveiled


By Park-Shin Jung

I am Park-Shin Jung. I am a professional content writer for cars.

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