A new car group is being created: Mitsubishi is “strengthening” the Honda-Nissan alliance
Japan’s Mitsubishi Motors will join the alliance between Honda Motor and Nissan Motor, creating an automotive group with total sales of more than 8 million vehicles, the Nikkei business daily reported.
Mitsubishi Motors, which is 34 percent owned by Nissan, will work with Honda and Nissan on the details of the partnership, but the three companies intend to standardize the in-vehicle software that controls the cars, the Nikkei said.
Mitsubishi Motors declined to comment on the report, while officials from Nissan and Honda were not immediately available for comment.
The pressure comes as Nissan, Japan’s third-largest carmaker, continues to lose market share in its two biggest markets, the United States and China, which together account for half of its global sales.
The company cut its annual forecast after the big discounter in the US almost completely wiped out its profit in the first quarter.
The cooperation could help Japanese automakers cut costs and strengthen to fight tough competition in the electric vehicle market, which is dominated by the likes of China’s BYD and Tesla.
In China, the world’s largest auto market, Japanese brands used to be strong, but now they are facing domestic manufacturers that have rapidly ramped up production and won over consumers with cheap software-powered vehicles.
Since March, Nissan and Honda have been considering a strategic partnership in the production of components for electric vehicles, with the aim of creating a greater foothold in the global battery car market, which is expected to grow in the coming years.
Source: Seebiz
Photo: Pixabay, Unsplash
Source: bizlife.rs
