Nissan and Honda Form Alliance for Electric Vehicle Production

March 22nd, 2024 by

Nissan of Fort Pierce 2024 Nissan Leaf

Photo Source: NISSAN

China has forced the hands of two of Japan’s largest automakers to take decisive action on artificial intelligence and electric vehicles (EV). What began as a rumor in Japanese media is officially confirmed. Japan’s second and third largest-selling automakers, Nissan and Honda, announced on March 15, 2024, that they had decided to investigate a strategic alliance in the fields of artificial intelligence and electric cars. To clarify, Nissan and Honda have signed a memorandum of understanding for a feasibility study to explore the potential of jointly developed electric vehicles. If the two manufacturers reach an agreement, the partnership could also include working together on software. 

Strategic Elements

The collaboration is in its infancy at this point, but if Nissan and Honda do finalize a deal, the plan is to channel efforts into “automotive software platforms, core components related to EVs, and complementary products.” The software aspect could pertain to autonomous driving technologies or safety since the press release published by both companies refers to zero traffic-accident fatalities. It also includes a shared goal of reaching carbon neutrality.

According to sources, Nissan and Honda seek to develop a new platform exclusively intended for electric vehicles. The collaboration could extend to engineering electric vehicles together. Moreover, the Japanese automakers could pool money to purchase batteries and a common electric vehicle powertrain. Toshihiro Mibe, Honda’s director, president, and representative executive officer, elaborated on the purpose of automotive cooperation, stating, “Our study criteria will be whether the synergy of the technologies and knowledge our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”

The Potential Gains of Nissan and Honda Teamwork

A tie-up would not only speed up development but also bring research and development costs down. That said, a point that remains up in the air is how a Nissan-Honda partnership would affect the partnerships that each company is in. In the 2022 model year, Honda and General Motors announced plans to build “millions of electric vehicles starting in 2027.” Still, Honda is no longer working with General Motors to co-develop affordable electric crossovers, so the fact it is searching for a new partner is unsurprising. The collaboration with General Motors is likely to be limited to the 2024 Honda Prologue and Acura ZDX underpinned by the Ultium platform.

Nissan’s commitments are more complicated to navigate. For example, Nissan has a partner in Paris-based Renault when it comes to electric vehicles and other types of automobiles. It is a relationship that started to waver in 2018. The faltering partnership resulted in negotiations that reduced Renault’s stake in Nissan and granted Nissan greater independence. To that end, the next-generation Micra will be heavily based on the reborn Renault 5. It is going to utilize approximately 80 percent of the same parts and will enter production in 2026 at Renault’s Douai factory in northern France. 

With Chinese competition intensifying while Stellantis and the Volkswagen Group are doubling down on electric vehicles, Nissan and Honda do not want to trail behind. Nonetheless, since the two have just signed a memorandum of understanding, it means a jointly developed car or platform is unlikely to come out in the next few years, provided a final deal is agreed upon. The potential of a collaboration is enticing, though.

If you want to learn more about Nissan’s prospects, please come visit Nissan of Fort Pierce, where our hard-working sales team will strive to answer all your questions. At the same time, our professional technicians can refresh your automobile once you have an online appointment at our service center.

Posted in Nissan, Nissan EV