These are challenging times for automakers. Competition has never been fiercer, fueled by the rise of Chinese automakers who have a leg up on the electric vehicle race. Add in increasingly stringent emissions regulations, and you have the perfect storm. To overcome the obstacles ahead, some of the biggest names in the industry are joining forces. The newly formed Honda-Nissan alliance could welcome a third player: Mitsubishi.
Nikkei Asia reported that Mitsubishi is reportedly looking to join the existing deal between Honda and Nissan. According to initial approval Announced in mid-March, the collaboration focuses on “automotive software platforms, core components related to electric vehicles, and complementary products.” Seeing a third Japanese brand join the alliance would make sense, considering Nissan owns a 34 percent stake in Mitsubishi.
The report stated that Mitsubishi has signed NDAs with Honda and Nissan to begin discussions on broader cooperation. Shortly after the report emerged, Mitsubishi shares rose by 6.3 percent, according to ReutersNissan also saw an increase of 2.8 percent, while Honda rose 2.6 percent.
The three companies working together will reduce R&D costs and speed up development, thereby better fending off competition from China. However, final details about the alliance have not been disclosed. It is worth noting that Nissan and Mitsubishi have been working with Renault since 1999.
The collaboration between Nissan, Honda, and Mitsubishi is not the first Japanese trio to form this year. A few months ago, Toyota, Mazda, and Subaru are working together to develop a new generation of internal combustion engines. This next wave of ICEs will focus on hybrid drivetrains and compatibility with carbon-neutral fuels. Toyota is preparing several inline fours, Mazda is perfecting rotary technology for long-range electric vehicles, and Subaru is perfecting its signature boxer engine.
Since I'm a naive person, it would be great if Nissan, Honda, and Mitsubishi teamed up to make an affordable sports car. Nissan recently dropped a hint about bring back Silvia someday. However, the alliance seems to be focused only on less exciting things like software and electric vehicles. Nikkei Asia reports that plug-in hybrids and kei cars could also be on the agenda. Ultimately, it’s all about cost-cutting, and it’s hard to make a profitable sports car.
