Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Nissan considering partnership with Honda on EVs - sources

Published 2024-03-14, 11:59 p/m
© Reuters. FILE PHOTO: A Nissan logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo
7201
-
7267
-

By Maki Shiraki

TOKYO (Reuters) - Nissan Motor is considering seeking a business partnership with Honda Motor on key components for electric vehicles to cut production costs, three people familiar with the matter at Nissan said.

The potential partnership with domestic rival Honda will help Nissan gain scale, which is crucial for Japanese automakers as they face heavy competition from China's BYD, Tesla (NASDAQ:TSLA) and other electric vehicle makers.

The sources, who declined to be identified as the matter is still private, said that Nissan and Honda are yet to formally start discussions, with the scope of the partnership undecided.

Another source said the idea of collaboration emerged between the chief executives of the companies.

Nissan is considering partnering with Honda on key EV parts, as well "kei car" - boxy vehicles that are smaller and less powerful than regular cars, primarily made for the domestic market.

The partnership could extend to overseas businesses, but that would affect Honda's existing collaboration with General Motors (NYSE:GM), according to two of the sources.

Nissan's pursuit of a partnership was first reported by TV Tokyo. A Nissan spokesperson declined to comment. A Honda spokesperson said there was nothing the company could say.

A source at Honda said a potential partnership with Nissan is one of many possibilities that the company is considering, but there are many agenda that need to be sorted out for it to proceed with a new tie-up.

Honda is aiming to increase its ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040.

Nissan already cooperates with Renault (EPA:RENA) on EVs, mainly in Europe. The next Nissan electric Micra will share the same architecture as the new Renault Five and be built in the same plant in northern France.

Nissan has also committed to invest up to 600 million euros ($652.50 million) in Renault's new electric vehicle entity Ampere.

© Reuters. FILE PHOTO: A Nissan logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo

But the two firms last year reduced the scope of a years-long alliance to allow for a more agile partnership, and Renault has since signed agreements with new partners such as China's Geely.

($1 = 0.9195 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.