By John Meyer, consultant in financial affairs – Eurasia Business News, July 28, 2024. Article n°1113.

Mitsubishi Motors will join the alliance of Honda and Nissan, Japan’s second- and third-largest automakers, amid tougher competition between Japanese companies and Chinese and American ones, writes Nikkei Asia. This alliance was initially announced in March 2024

Honda and Nissan (owns 34.01% of Mitsubishi) announced a comprehensive cooperation agreement back in March. Mitsubishi, in turn, signed a non-disclosure agreement with Honda and Nissan and began negotiations, the newspaper points out.

At the end of the fiscal year ended in March 2024, Honda sold 4.1 million cars worldwide, and Honda – 3.44 million.

Mitsubishi continues to discuss with Honda and Nissan the finalization of the terms of cooperation. The three companies are expected to standardize their car management software, as well as consider complementing each other’s vehicle lineup. Honda, unlike Mitsubishi Motors, does not produce plug-in hybrid vehicles (PHVs) or pickup trucks in Japan. In the future, the two companies will also seek to cooperate in the field of mini car production.

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As the publication reminds, the largest Japanese automaker Toyota is also engaged in the creation of alliances in the country. The company has already merged with Daihatsu, Suzuki, Subaru, Mazda and Hino Motors, bringing the total sales of the five companies to 16 million cars. The publication links the desire of Japanese automakers to unite with the efforts and significant funds that Tesla and Chinese automakers are investing in electric vehicles. Japanese manufacturers cannot compete with them in terms of scale and supply chain, the newspaper points out.

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In November 2023, Nissan announced plans to supply about 100,000 cars to China from 2025, including new models of electric vehicles. At the same time, the company announced that it intends to create its first plug-in hybrid (PHEV), as well as all-electric models. It was noted that all developments will be carried out by the Chinese research center of the automaker. The company promised to release one of the models in the second half of 2024.

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© Copyright 2024 – Eurasia Business News. Article No. 1113.