Honda and Nissan plan to join forces and work together on electric car technology at a time when the Japanese automaker is trying to catch up with Chinese competitors. Japanese manufacturers will work together on electric car technology, including components and software, especially after signing a memorandum of understanding. This took place on Friday, March 15, 2024.

The goal of the two companies is to reduce costs by combining resources. Honda and Nissan are considered the second and third largest automakers in the country, respectively, after Toyota. The manufacturer is struggling to compete profitably with new competitors with the rapid growth of the electric vehicle sector, which results in development costs. big.

The company is gaining market share in a competitive industry alongside Tesla, which follows Elon Musk. BYD surpasses Tesla as the best-selling electric car manufacturer in the world. Nissan is considered one of the first companies to work in the field of electric cars, and the largest car will be marketed. Electricity in the world; It was launched in 2009 from its factory in Sunderland.

It has struggled to keep up with Chinese competitors who have access to cheap raw materials and labor as well as larger-scale occupied customers, and Nissan CEO Makoto Uchida said that startups are too aggressive and are making inroads too quickly.

Honda President Toshihiro Mebe said that the company is constrained by time and needs speed during the year 2030 in order for the company to be in a good position, and the rise of emerging companies has become stronger and faster, and companies that cannot respond to the changes will be eliminated.

The two companies sell more than 3 million cars worldwide, and it is expected that the partnership will take place through operations in Japan and abroad, and the agreement between the companies is non-binding, which means that the partnership could collapse and does not contain any capital.

At the end of 2019, the Japanese government tried to convince automakers to enact a large-scale merger to create a national champion, but the idea was quickly rejected by the companies, and there are Japanese laggards who are playing a big role in catching up, which highlights the threat that China poses to Western car companies by… Including those in Japan, and there are advantages that China enjoys in the ability to produce cars at 25% to 30% lower prices.

The Chinese government has greatly supported electric car exports. As a result, Chinese cars are on the road, and Honda is closing its Swindon plant during 2021 after 35 years, with its rear end expected to be manufactured there from 2026.

Nissan is working to rebalance its troublesome company with Renault. The French automaker reduced its stake in the Japanese company to 43% and the voting rights associated with its 155 percent stake in its partner company.

AMPERE is considered an enabler for Nissan to participate in new business opportunities in Europe, and the two-decade alliance between the two partners has been loosened, especially after the arrest of former President Carlos Ghosn for allegedly under-reporting his income and later escaping house arrest by hiding in a box. Music equipment and escaping via private plane. Although electric vehicles are an established part of the market, automakers and suppliers are still racing to develop solid-state batteries as a way to improve vehicle range, as well as vehicle safety.