Nissan and Honda have stated that they will work together to develop electric vehicles and auto intelligence technology, areas where Japanese manufacturers have fallen behind.
Nissan and Honda announced Friday that they will collaborate to develop electric vehicles and auto intelligence technologies, two areas where Japanese manufacturers have fallen behind.
The CEOs of Nissan Motor Co. and Honda Motor Co. appeared together at a news conference in Tokyo to announce that Japan’s second and third largest automakers will investigate opportunities for partnerships.
Both sides stated that the non-binding agreement’s terms are still being worked out. According to the executives, the companies would collaborate on fundamental technology while maintaining their own products.
Nissan CEO Makoto Uchida underlined the importance of speed in the development of technology solutions.
“We don’t have time,” he said. “It is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges.”
Honda President Toshihiro Mibe stated that the companies share identical principles and could develop “synergies” when competing with formidable competition.
As concerns about emissions and climate change rise, automakers throughout the world are swiftly transitioning to electric vehicles, relying on batteries and motors rather than gasoline engines.
However, Japanese manufacturers have slipped behind rivals such as Tesla in the United States and BYD in China in the development of EVs, owing in part to their previous success with combustion engines.
Toyota Motor Corp., the world’s largest carmaker, has frequently stated that the world is not ready for a total transition to EVs, in part due to a lack of charging infrastructure, and has instead pushed hybrids, which combine a gas engine and an electric motor.
However, Toyota is likely to make a strong push for EVs in the coming years.
Nissan is considerably ahead of other Japanese automakers in terms of EVs because it was one of the first to release an EV, the Leaf, in late 2010.
High anticipation for the Nissan-Honda agreement was reflected in large gains in the stock prices of both companies on Thursday, following a Japanese media report that such a deal might be in the works.
According to the executives, the deal does not include mutual capital ownership for the time being, although the companies may consider it in the future.
“How we can raise our competitiveness is what we are determined to pursue,” Uchida said in a statement.
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