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Nissan Considers Business Partnership with Honda to Advance Electric Vehicle Production

Tokyo, March 15, 2024, The Europe Today: Nissan Motor is contemplating a potential business partnership with Honda Motor on crucial components, according to three individuals familiar with the matter at Nissan.

The envisioned collaboration with fellow Japanese automaker Honda is envisioned to confer Nissan with economies of scale, deemed indispensable in the face of formidable competition from electric vehicle manufacturers such as China’s BYD and the pioneering Tesla. These insights were shared by sources, who opted for anonymity given the sensitive nature of the subject, emphasizing that discussions between Nissan and Honda have yet to be formalized, with the precise contours of the partnership yet to be delineated.

According to one source, the genesis of this collaborative initiative traces back to discussions between the chief executives of both companies. Nissan’s prospective collaboration with Honda is anticipated to encompass pivotal EV components, alongside “kei car” production – compact vehicles tailored primarily for the domestic market.

Although the partnership’s scope may extend to international ventures, concerns have been raised regarding its potential impact on Honda’s existing collaboration with General Motors, as indicated by two of the sources.

Initial reports of Nissan’s pursuit of a partnership were first aired by TV Tokyo, although a spokesperson for Nissan declined to provide commentary on the matter. Similarly, a spokesperson for Honda refrained from offering insights, citing a lack of pertinent information.

However, a source within Honda indicated that while a potential partnership with Nissan is under consideration among various options, several issues necessitate resolution for the venture to materialize.

Meanwhile, Honda is steadfast in its commitment to transitioning towards an electrified future, with aspirations to achieve a 100% sales ratio of electric vehicles and fuel cell vehicles by 2040.

Notably, Nissan already collaborates with Renault on EV ventures, primarily concentrated in Europe. The forthcoming Nissan electric Micra is slated to share architectural similarities with the new Renault Five, with production set to commence at the same facility in northern France. Additionally, Nissan has pledged investments of up to 600 million euros ($652.50 million) in Renault’s nascent electric vehicle entity, Ampere.

As the automotive landscape undergoes profound transformation, the prospective partnership between Nissan and Honda underscores a concerted industry-wide effort to navigate the complexities of electric vehicle production and reinforce competitive positioning in the global market.