Mitsubishi Motors to join Honda-Nissan alliance, Nikkei reports

TOKYO — Japan’s Mitsubishi Motors is set to join an alliance between Honda Motor and Nissan Motor, combining the two carmakers, whose combined sales exceed eight million vehicles, the Nikkei daily reported July 28.

Mitsubishi Motors, which is 34 percent owned by Nissan, will work with Honda and Nissan to finalize details of their strategic partnership, Nikkei reported, adding that the three companies intend to unify the on-board software that controls the cars.

Mitsubishi Motors declined to comment on the report, while a Nissan spokesman said only that the report was not based on anything either company had announced. Spokespeople for Honda did not respond to requests for comment.

The development comes as Nissan, Japan’s third-largest carmaker, has been steadily losing share in its two largest markets, the United States and China, which together accounted for half of its global sales in the year to March.

On July 25, the company lowered its full-year outlook after significant U.S. price cuts nearly wiped out its first-quarter profit.

Nissan and Honda said in March they were considering a strategic partnership to collaborate on producing components for electric vehicles and using artificial intelligence in automotive software platforms.

Mitsubishi Motors is already part of a long-standing alliance with Nissan and France’s Renault, which the three carmakers agreed to restructure in 2023 into a smaller but more pragmatic and flexible partnership.

A separate collaboration between Nissan, Honda and Mitsubishi Motors could help the Japanese carmakers cut costs and strengthen their position against fierce competition in the electric vehicle market, which is dominated by companies such as China’s BYD and Tesla.

In China, the world’s largest car market, Japanese brands were once strong but are now facing competition from domestic automakers who have quickly ramped up production and won over consumers with affordable, software-rich vehicles. REUTERS