These are challenging times for automakers. Competition has never been so fierce, fueled by the rise of Chinese car manufacturers who have a head start in the EV race. Add increasingly stricter emissions regulations, and you get the perfect storm. To cope with all the hurdles ahead, some of the biggest names in the industry are joining forces. The recently formed Honda-Nissan alliance could welcome a third player: Mitsubishi.
Nikkei Asia reports that Mitsubishi allegedly wants to join the existing deal between Honda and Nissan. Per the initial agreement announced in mid-March, the collaboration focuses on "automotive software platforms, core components related to EVs, and complementary products." Seeing this third Japanese brand join the alliance would make sense, considering Nissan has a 34 percent stake in Mitsubishi.
The report states that Mitsubishi has already signed an NDA with Honda and Nissan to kick off discussions about a wider tie-up. Shortly after the report emerged, shares in Mitsubishi rose by 6.3 percent, according to Reuters. Nissan also saw an increase of 2.8 percent, while Honda gained 2.6 percent.
The three companies working together would reduce R&D costs and speed up development, better fending off Chinese competition. However, final details about the alliance haven't been disclosed. It's worth noting that Nissan and Mitsubishi have been working together with Renault since 1999.
A collaboration between Nissan, Honda, and Mitsubishi would not be the first Japanese trio formed this year. A few months ago, Toyota, Mazda, and Subaru teamed up to develop a new generation of combustion engines. This next wave of ICEs will focus on hybrid powertrains and compatibility with carbon-neutral fuels. Toyota is preparing several inline-fours, Mazda is enhancing its rotary technology for range-extended EVs, and Subaru is refining its signature boxer engine.
Being the naive person that I am, it would be great for Nissan, Honda, and Mitsubishi to jointly work on an affordable sports car. Nissan did recently hint about bringing back the Silvia one day. However, this alliance seems to be about less exciting things such as software and EVs. Nikkei Asia reports that plug-in hybrids and kei cars could also be common goals. At the end of the day, it's all about cutting costs, and it's difficult to make profitable sports cars.
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