Nissan and Honda have signed a Memorandum of Understanding to share resources and technological insights as both companies intend to upscale the manufacturing of electric vehicles (EVs).
The two auto manufacturers have announced that the strategic partnership will hasten the production of electric vehicles, satisfying rising global demands as the debate on Climate Change rages on.
Both companies will collaborate in pursuing an intensive feasibility study on automotive software platforms and core components for efficient EV manufacture.
“Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry,” said the Honda director Toshihiro Mibe.
In a news conference in Tokyo, the companies’ executives said that sharing technologies would not hinder them from manufacturing different products. Despite being competitors in the global automotive industry, the two companies are committed to outstrip China and the US’s dominance in electric mobility. Currently, more than 50% of electric vehicles are manufactured in China.
“It is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges. We look forward to further discussions and aim to find win-wins for sustainable growth,” said the CEO of Nissan Makoto Uchida.
The Japanese motor industry has been reluctant to shift their manufacturing strengths from fuel-powered cars to fully electrified vehicles. Instead, companies like Toyota create hybrid vehicles that allow customers to choose between the fuel engine and the electric motor. Nissan has been more aggressive in its e-mobility plans compared to other players in the Japanese market. On July last year, the company invested more than $600 million in Renault’s electric vehicle unit despite their troubled alliance.
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