The second and third largest auto manufacturers in Japan are reportedly joining forces as intense competition in the electric vehicle market coupled with the expenses in bringing a new car to market makes collaborators out of rivals.
According to TV Tokyo, Nissan (OTCPK:NSANY) is teaming up with Honda (NYSE:HMC) to collaborate on technology, development, production, and parts procurement in EVs. The partnership will enable Nissan (OTCPK:NSANY) to streamline its management and share the costs in developing EVs, while Honda (HMC) will benefit from synergies in technology with Nissan (OTCPK:NSANY).
Honda (HMC) is currently collaborating with General Motors (GM) on hydrogen fuel cells at a facility in Michigan but has pulled out of its partnership with the U.S. automaker on producing cheaper electric vehicles, deciding instead to pursue this goal separately. Honda (HMC) is also invested in a startup that is developing nuclear fusion to supply the power for EV charging stations.
And through a joint venture with Renault (OTCPK:RNLSY) and Mitsubishi (OTCPK:MSBHF), Nissan (OTCPK:NSANY) is developing EVs for markets in Europe, Latin America, and India starting with a pick-up truck between Nissan (OTCPK:NSANY) and Renault (OTCPK:RNLSY) that will be launched in Latin America. The company is also reportedly in talks with Fisker (FSR) for a $400M investment and to produce the Fisker Alaska pickup truck at one of Nissan’s (OTCPK:NSANY) U.S. facilities.
Nissan (OTCPK:NSANY) shares are up by 2.6% while Honda (HMC) shares are fractionally lower.
