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Honda and Nissan have agreed a new partnership to work together on future electric cars in the face of increasing competition from Chinese carmakers.
The two Japanese automotive giants – who are the respectively the second and third largest carmakers in Japan – have signed a non-binding agreement, with discussions due to start imminently. The partnership also includes working together on technology and artificial intelligence.
"Emerging players are very aggressive and are making inroads at incredible speed," Nissan CEO Makoto Uchida said in a press briefing. "We cannot win the competition as long as we stick to conventional wisdom and a traditional approach."
The two firms putting aside aside their long-running rivalry is just one of several similar partnerships legacy carmakers are forming to stem the threats from Chinese carmakers. By pooling resources, the likes of Honda and Nissan hope to bring down costs.
Firms such as BYD and SAIC-owned MG are flooding markets, including the UK, with low-cost EVs. Traditional carmakers, such as Honda and Nissan, fear they will be left behind, and are struggling to develop new EVs at the same pace as the Chinese.
Only this month, Nissan said it was stopping production of the pioneering LEAF, as first revealed by Electrifying.com. The electric hatchback has struggled to remain competitive against a tide of newer models.
The deal between Honda and Nissan comes just days after Volkswagen said it may collaborate in a similar partnership with Renault.
