Mitsubishi, Honda, and Nissan Exploring Partnership

Mitsubishi Motors is reportedly set to join a strategic partnership with Honda and Nissan.

According to the Nikkei newspaper, this move aims to consolidate efforts to better compete in the increasingly competitive electric vehicle (EV) market. The partnership would split the JDM auto industry down the middle, with Mitsubishi, Honda, and Nissan working together on EVs, while Toyota Motor Group and its alliances with Subaru and Mazda focus on internal combustion and hybridization.

The urgency behind this alliance stems from the rapid advancements in the EV sector, where new players have outpaced traditional automakers. Tesla and BYD have secured substantial shares of the global EV market, while Japanese giants like Nissan and Honda have struggled.

The core of the issue lies in the transition from hardware-centric vehicles to those defined by software, capable of continuous updates to enhance functionality. This new landscape demands a departure from traditional practices, with substantial investment needed to develop in-house software systems and EV batteries. The financial burden is heavy, with estimates running into the tens of billions of dollars–the collaboration between Mitsubishi, Honda, and Nissan is seen as necessary to share the load and remain competitive.

However, the path forward is fraught with challenges. The history of automotive partnerships is littered with examples of failures, such as the ill-fated merger between Daimler-Benz and Chrysler. For Honda, Nissan, and Mitsubishi, the key to success will lie not only in working together but also in forming strategic alliances across various sectors, including semiconductors and infrastructure.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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