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Nissan, Honda and Mitsubishi will share EV components and AI research

TOKYO — Japanese automakers Nissan and Honda say they plan to share components for electric vehicles like batteries and jointly research software for autonomous driving. A third Japanese manufacturer, Mitsubishi Motors Corp., has joined the Nissan-Honda partnership, sharing the view that speed and size are crucial in responding to dramatic changes in the auto industry centered around electrification. A preliminary agreement between Nissan Motor Co. and Honda Motor Co. was announced in March. After 100 days of talks, executives of the companies evinced a sense of urgency. Japanese automakers dominated the era of gasoline engines in recent decades but have fallen behind formidable new players in green cars like Tesla of the U.S. and ChinaÂ’s BYD. “Companies that donÂ’t adapt to the changes cannot survive,” said Honda Chief Executive Toshihiro Mibe. “If we try to do everything on our own, we cannot catch up.” Nissan and Honda will use the same batteries and adopt the same specifications for motors and inverters for EV axles, they said. By coming together in what Mibe and counterpart at Nissan, Makoto Uchida, repeatedly called “making friends” to achieve economies of scale, the companies plan more strategic investments in technology and aim to cut costs by boosting volume. Each company will continue to produce and offer its own model offerings. But they will share resources in areas like components and software development, where “making friends” will be a plus, Mibe and Uchida told reporters. They declined to say whether the friendship will extend to a mutual capital ownership, while noting that wasnÂ’t ruled out. The two companies also agreed to have their model lineups “mutually complement” each other in various global markets, including both internal combustion engine vehicles and EVs. Details on that are being worked out, the companies said. Honda and Nissan will also work together on energy services in Japan. Under ThursdayÂ’s announcements, Mitsubishi will join as a third member. Toyota Motor Corp., JapanÂ’s top automaker, is not part of the three-way collaboration. Although Honda and Nissan have very different corporate cultures, it became clear, as their discussions on working together continued, their engineers and other workers on the ground have a lot in common, Uchida said. “Speed is the most crucial element, considering our size,” he added.

Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

Honda asked for Takata inflator change without telling Feds

Honda and Takata could be in legal hot water after the automaker requested a design change to the supplier's airbag inflators in 2009 without notifying the government. According to internal documents obtained by Reuters, the updated parts had extra vents to reduce the force directed occupants if a rupture occurs. Automakers generally need to tell the National Highway Traffic Safety Administration about any safety-related changes to their vehicles, but Honda argues to Reuters that the disclosure wasn't necessary in this case. The company wanted the changes to the parts to "protect against the possibility of future manufacturing errors – it was not an acknowledgement of a larger design flaw in the inflators," Honda spokesperson Chris Martin told Reuters. The revised components started going into some Honda models in 2011. However, a jury might not agree with Honda's position, and a lawyer could argue the company had a responsibility to report the alterations. There's already a pending class action lawsuit against automakers and Takata for violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, and there are many more from individuals. Among those is the case of a pregnant woman in Malaysia who died from a rupturing airbag. An investigation by the Independent Testing Coalition found three factors for the inflators'' rupturing. The use of ammonium nitrate is part of the problem, but the inflator's assembly doesn't keep moisture from reaching the chemical. If a vehicle is in a high humidity area, the danger is even worse. When they combine, these issues make the explosions more likely. Takata allegedly knew about the problem as far back as 2000 but hid the failures. Emails even reportedly showed workers joking about changing the data. Related Video: