Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe, right, announced Friday, March 15, that they will create joint ventures to develop electric vehicle and auto intelligence technology, in a bid to catch up with rivals.
Two legacy auto rivals are coming together to take on new school EV focused manufactures like Tesla, Rivian and China’s BYD. Nissan Motor and Honda Motor have signed a non-binding memorandum of understanding to explore areas the two Japanese auto manufacturers can collaborate on in future EV projects. The collaboration will focus on manufacturing key components for EVs as well as A.I in auto tech and software platforms. The agreement could help the two develop economies of scale in producing EVs.
The Nikkei, a Tokyo based financial newspaper, reported the joint plan may include the introduction of a common powertrain, as well as the joint procurement and development of a common platform. “Emerging players are very aggressive and are making inroads at incredible speed,” said Nissan CEO Makoto Uchida in a statement, "We cannot win the competition as long as we stick to conventional wisdom and a traditional approach.”
Nissan entered the EV race early in 2010 with its all-electric Nissan Leaf. Over the past 14 years the Leaf has struggled to keep up with EV focused auto makers and other legacy auto manufactures with EV sales. Though the Leaf does not make it onto the top 20 EV list for new sales, a list dominated by Tesla, Chevy, Rivian, Ford and BMW, it does come in #4 in used EV sales. The Leaf retains 54% of its value at 3 years and 44% at 5 years. The automaker's latest EV may fare better, The Nissan Ariya jumped to #17 in EV sales for 2023, with a respectable 13,464 new model units sold.
Tesla's Model Y is the world's most popular EV with sales of roughly 771,300 in 2022.Honda’s overall EV sales in 2023 accounted for less than 0.5% of its world wide sales, but the global giant smashed records with hybrid sales. The company set an all-time sales record with two hybrids; the Honda CR-V hybrid, the U.S’s best-selling hybrid SUV model (197,317 units sold) and the Accord hybrid sedan the most popular hybrid-electric car in 2023 (96,323 units sold). The Honda CR-V is the 4th best selling used hybrid in the U.S. The Used Accord hybrid also made the top ten. . This latest auto manufacturing collaboration comes on the heels of Honda and General Motors scrapping a $5 billion EV investment plan in late 2023. The tanked venture was to jointly develop affordable electric vehicles. Nissan will continue its alliance with Renault and Mitsubishi Motors, though in a reduced capacity. Renault recently partnered with China's 7th largest auto manufacturer, Zhejiang Geely Holding Group (Geely).
"We are strapped for time and need to be speedy," Honda CEO, Toshihiro Mibe said, “In 2030 to be in a good position we need a decision now."
Honda said it still plans on hitting its target of 100% of sales being electric vehicles and fuel cell vehicles by 2040. Nissan plans to introduce 19 full-electric and eight hybrid models before 2030, with the company aiming for the total electrification of its European fleet by 2030.
Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe, right, announced Friday, March 15, that they will create joint ventures to develop electric vehicle and auto intelligence technology, in a bid to catch up with rivals.
