Nissan and Honda have officially announced their collaboration in the development of electric vehicles (EVs) and intelligent automotive technology, marking a significant step for Japanese automakers in sectors where they have previously lagged.
At a joint news conference in Tokyo, the CEOs of Nissan Motor Co. and Honda Motor Co. revealed their plans for cooperation between Japan's second and third-largest automakers.
While the specifics of this non-binding agreement are still under discussion, both parties have emphasized their commitment to jointly developing core technologies while ensuring their products retain distinct identities.
Nissan CEO Makoto Uchida highlighted the urgency of innovation in technological solutions, stating, "We don’t have time. Significantly, we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges."
Echoing this sentiment, Honda President Toshihiro Mibe spoke of shared values between the companies and the potential for creating "synergies" in a competitive automotive landscape.
The global automotive industry is rapidly transitioning towards electric vehicles, with a focus on battery and motor technologies over traditional gas engines, driven by increasing concerns over emissions and climate change.
However, Japanese car manufacturers have been somewhat slower in embracing EVs compared to their counterparts like Tesla in the US and BYD in China, largely due to their historic success with combustion engine vehicles.
Toyota Motor Corp., despite being the largest automaker globally, has advocated for a more gradual shift to EVs, citing infrastructural challenges, and has instead promoted hybrid vehicles.
Nevertheless, Toyota is also expected to intensify its efforts in the EV market in the coming years. Nissan, on the other hand, has a slight lead among Japanese automakers in the EV space, having launched its Leaf model in late 2010 as one of the first electric vehicles on the market.
The announcement of the Nissan-Honda partnership has been met with enthusiasm from investors, leading to significant increases in stock prices for both companies following initial reports of the potential deal.
Following the official announcement, Nissan's shares saw a 3.2% rise, while Honda's shares went up by 1.7%.
The executives clarified that the agreement currently does not involve mutual capital ownership, but they are open to exploring this possibility in the future.
Uchida emphasized the goal of enhancing competitiveness as a key driver behind this collaboration.
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