Japanese car manufacturers announced on Friday they will be working to develop electric vehicles in tandem.
Nissan and Honda, the country’s second- and third-biggest automakers, will begin a feasibility study within the new partnership, whose scope will include automotive software platforms and complementary products, according to the Friday news release.
The collaboration comes as Japanese EV makers face increased competition from their Chinese counterparts.
Honda is looking to increase sales of its battery-powered vehicles. The company sold about 2.8 million cars in the first nine months of last year, according to Reuters, making up less than 0.5% of its worldwide sales.
Nissan CEO Makoto Uchida said the agreement is paramount for both companies since they face “common challenges” and hope to find a common thread that will bring sustainable growth down-the-line.
“It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges,” he said. “We look forward to further discussions and aim to find win-wins for sustainable growth.”
Honda’s CEO, Toshihiro Mibe, said he hopes to determine if the joint operation will allow both manufacturers to lead the industry by bringing in “new value.”
“In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda,” he said. “Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”
Automakers around the world are changing their focus to producing electric vehicles as the concerns over climate change and emissions increase.
