Japanese Automakers Join Forces in Autonomous Driving Tech Race

Nissan, Honda, and Mitsubishi announce collaboration on electric vehicles and autonomous driving technology, aiming to adapt quickly to industry changes and stay competitive in the green car market.

Key partnership areas: The Japanese automakers will work together in critical areas to accelerate their electric vehicle (EV) development and autonomous driving capabilities:

• Nissan and Honda will share components for EVs, including batteries, and adopt the same specifications for motors and inverters for EV axles.
• The companies will jointly research software for autonomous driving, pooling their resources and expertise to advance this technology.

Adapting to industry shifts: The collaboration is driven by the need to respond swiftly to the dramatic changes in the auto industry, particularly the shift towards electrification:

• Japanese automakers, once dominant in the gasoline engine era, have fallen behind new players like Tesla and BYD in the green car market.
• The executives emphasized the importance of adapting quickly to survive in the rapidly evolving industry landscape.

Pursuing economies of scale: By “making friends” and sharing resources, the companies aim to achieve economies of scale and make more strategic investments in technology:

• The collaboration will allow the automakers to cut costs by boosting volume and sharing resources in areas like components and software development.
• Each company will continue to produce and offer its own model offerings while benefiting from the shared resources and expertise.

Complementary model lineups: Honda and Nissan have agreed to have their model lineups “mutually complement” each other in various global markets:

• This applies to both internal combustion engine vehicles and EVs, with details still being worked out.
• The companies will also work together on energy services in Japan, with Mitsubishi joining as a third member.

Broader implications: The collaboration between Nissan, Honda, and Mitsubishi highlights the increasing importance of partnerships and resource sharing in the auto industry as companies race to develop advanced technologies and adapt to the shift towards electric and autonomous vehicles. While the Japanese automakers have fallen behind in the green car market, their willingness to work together shows a recognition of the need for speed and scale to remain competitive. The success of this partnership could have significant implications for the future of the Japanese auto industry and its ability to compete with new players like Tesla and BYD in the rapidly evolving market for electric and autonomous vehicles.