Some of the conflict related to autonomous tech, with Nissan already working with Wayve Technologies from the UK, while Honda prefers to keep its development in-house. Now, Nikkai Asia is reporting that Nissan is in final talks with Uber, who has been working with Nissan and Wayve.
Autonomous Nissan Ride Hailing Taxis
Uber plans to have autonomous taxis operating in various countries around the world in the next few years using the tech developed by Nissan and Wayve. That likely explains why Nissan didn't want to scrap its development in a merger with Honda. A Nissan insider told Nikkei Asia that "Wayve's technology is something that conventional automakers don't have, so teaming up with them early is the best move." Which is contrary to Honda's approach of: "If we don't do it ourselves, it's meaningless,"
Nissan's current technology corresponds to Level 2+ autonomous driving, which can be hands-off in some situations but never eyes-off, and drivers must be ready to assume control at a moment's notice. The endgame, of course, is Level 5 with full autonomy and no provisions for a driver. Wayve, which was founded in 2017 by Cambidge University researchers in the UK, uses the model of a self-learning "AI driver" using just cameras rather than mixing 3D mapping, LiDar sensor arrays, and hand-coded rules like, say, Waymo.
Just like with EVs, automakers are making huge bets on autonomous driving being a dominant force in the future – and legislation to help it move forward. Nissan is in trouble partly because it went straight to EVs, skipping hybrid power almost completely. Now, it appears to have scuppered a merger with Honda to bet on Wayve's autonomous system, which is similar to Tesla's approach of being vehicle agnostic because it primarily uses cameras along with basic sensors already in cars. It currently uses Intel's Orin system-on-a-chip, but Wayve says its system can use whatever GPU an automaker already uses.
The reason this is a big bet for Nissan is because autonomous taxi services aren't anywhere near being a proven business model, and Wayve relies on AI and a cloud infrastructure, right as the alarm bells are ringing on the AI industry being a bubble that's close to bursting. Tesla, who has been working on this form of autonomous driving for a long time, as well as a robotaxi service, still isn't in the game. Meanwhile, Waymo and its LiDar-based approach is ahead of everyone and running in cities across the US.
Nobody knows if autonomous vehicles in general, or autonomous taxis specifically, are going to mature as technologies in the next few years, let alone as business models. What we do know is that right now, and for the foreseeable future, hybrid vehicles are a mature technology and in massive demand. And that Nissan doesn't have the hybrid vehicles it needs to be competitive.
Despite the merger talks with Honda breaking down, a source via Nikkai Asia says Honda is considering supplying Nissan with hybrid powertrains in North America, which is exactly what Nissan needs. After all, if Nissan doesn't survive in the short and medium term, investing in autonomous driving tech and taxis is pointless.
