According to a report on TV Tokyo recently, Nissan Motor (7201.T), opens new tab, is contemplating pursuing a commercial collaboration with Honda Motor (7267.T), opens new tab. The Nikkei business daily stated that the two companies may work together on electric vehicles.
TV Tokyo reported, citing unnamed sources, that Nissan’s board of directors resolved recently to explore the possibility of forming an agreement with its larger Japanese rival.
Nissan and Honda may collaborate on electric car development to better compete with Chinese rivals, according to a Nikkei article.
A non-binding memorandum of understanding is set to be signed by Nissan, which has a long-standing partnership with the French automaker Renault (RENA.PA), with Honda, according to TV Tokyo. The specific areas of cooperation have not yet been determined.
The Nikkei, citing many Nissan insiders, stated that such actions might involve the creation of a shared platform, cooperative procurement, and the deployment of a common powertrain.
According to the Nikkei, there is a possibility that the cooperation will involve developing electric vehicles together and purchasing batteries.
Nissan and Renault now work together on EVs, mostly in Europe. The upcoming Nissan electric Micra will be manufactured at the same northern French plant as the new Renault Five, and it will have similar architecture.
Additionally, Nissan has promised to contribute up to 600 million euros ($656.64 million) to Ampere, Renault’s new electric vehicle company.
However, the two companies this year scaled back a multiyear alliance to enable a more flexible cooperation; as a result, Renault has since inked deals with additional partners, including China’s Geely (GEELY.UL).
A Renault spokesman stated, “The partners are free to make strategic decisions outside of common projects together under the new framework agreement of the alliance.”
In the world’s largest auto market, China, last year, BYD (002594.SZ), opens new tab, and other electric vehicle manufacturers caused Nissan and Honda to lose market share. The Nikkei newspaper reported recently that they would reduce manufacturing in the nation.
