Honda, Nissan and Mitsubishi may form an alliance: what are the reasons
The Japanese automotive market seems to be about to undergo significant changes. Three major car manufacturers have decided to expand their cooperation by merging into a joint structure.
According to Reuters, Mitsubishi is also planning to join the newly formed Honda-Nissan alliance soon. The companies plan to work together to confront the challenges of the modern market, such as pressure from Chinese competitors, especially in the field of electric vehicles, and growing requirements for environmental friendliness of cars.
The terms of the agreement signed in March between Honda and Nissan provide for cooperation in the development of automotive software platforms, key components related to electric vehicles, and additional products. Mitsubishi joining this agreement will strengthen these efforts. It also makes sense given that Nissan has a 34% stake in the company.
Reports suggest that the likely expansion of cooperation between the three manufacturers has already benefited them. Soon after the information about the possible signing of the agreement appeared, Mitsubishi shares rose by 6.3%, Nissan also showed an increase of 2.8%, and Honda - by 2.6%. However, nothing is known for certain about the details of the future deal. Analysts suggest that it may involve the production of a joint plug-in hybrid and the development of compact cars.
The cooperation of the three companies should reduce research and development costs and speed up work on them. This is expected to give Japanese companies a certain advantage over Chinese automakers. It is worth noting that Nissan and Mitsubishi have been working together with French Renault since 1999.
The potential merger of Nissan, Honda and Mitsubishi will not be the first such phenomenon in the Japanese automotive market this year. A few months ago, Toyota, Mazda, and Subaru teamed up to develop a new generation of internal combustion engines. They plan to focus on hybrid powertrains and compatibility with carbon-neutral fuels. Toyota is preparing several inline four-cylinder engines, Mazda is improving its rotary technology for electric vehicles with an increased range, and Subaru is improving its proprietary opposed engine.
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