Japan's Mitsubishi Motors is poised to enter into an alliance with Honda Motor and Nissan Motor, forming a partnership among automakers that together sell over 8 million vehicles, according to the Nikkei newspaper.
Mitsubishi Motors, currently 34% owned by Nissan, will collaborate with Honda and Nissan to finalize the specifics of their strategic alliance. The Nikkei reported that the three companies plan to standardize software that operates vehicles. Mitsubishi Motors has not commented on the report, and a Nissan spokesperson stated that the report was not based on any official announcements from the companies. Honda has not responded to requests for comment.
This development occurs as Nissan, Japan's third-largest automaker, has been gradually losing market share in its top two markets, the United States and China, which together comprise half of its global sales. Nissan recently reduced its annual forecast after significant discounts in the U.S. nearly eliminated its first-quarter profits.
In March, Nissan and Honda announced they were exploring a strategic partnership to jointly develop electric vehicle components and artificial intelligence for automotive software platforms. Mitsubishi Motors is already part of an enduring alliance with Nissan and France's Renault, which last year agreed to restructure their partnership to be more streamlined and efficient.
A separate collaboration between Nissan, Honda, and Mitsubishi Motors could aid Japanese automakers in reducing costs and strengthening their position to compete in the electric vehicle market, which is currently led by companies such as China's BYD and Tesla. In China, where Japanese brands once dominated, they now face stiff competition from domestic automakers who have rapidly expanded production and attracted consumers with affordable vehicles equipped with advanced software.
