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Honda-Nissan-Mitsubishi alliance completes Japan car industry consolidation

Makoto Uchida (left), president and CEO of Nissan, and Toshihiro Mibe, director, president and representative executive officer of Honda, at a press conference in Tokyo on Thursday. (Getty)   Japan’s carmakers are putting the finishing touches on a combine-and-compete strategy for an automotive age defined by batteries and software, with three manufacturers joining forces to complement a separate Toyota Motor Corp.-led coalition. Honda Motor Co. and Nissan Motor Co. agreed this week to build upon a preliminary deal first reached in March, offering more details of how they plan to work together and also adding Mitsubishi Motors Corp. to the mix. While the companies havenÂ’t yet discussed a capital alliance, forming one is a possibility, Honda Chief Executive Officer Toshihiro Mibe said. The partnership will span joint work on software development, batteries and other electric-vehicle components, as well as EV charging and energy services, the three companies said. Their cozying up to one another follows Toyota acquiring stakes in Subaru Corp., Suzuki Motor Corp. and Mazda Motor Corp., and helping them navigate a fraught era for legacy car companies. Whereas Toyota has tied up with its domestic peers from a position of strength — itÂ’s been the worldÂ’s best-selling automaker for four years running — Honda, Nissan and Mitsubishi each are much smaller players on the global stage. Their coming together is seen as a move by JapanÂ’s government to fortify its auto industry in the wake of China having emerged as the worldÂ’s new No. 1 car exporter. “This is coordinated by the government to build a competitive automaking industry,” said James Hong, analyst at Macquarie Securities Korea Ltd., adding that most automakers in Japan are too small to be able to invest in EVs individually. “It feels like a politically driven alliance.” While the US has had the Big Three — General Motors Co., Ford Motor Co. and Chrysler, now owned by Stellantis NV — and Germany similarly has a trio in Volkswagen Group, BMW AG and Mercedes-Benz, Japan has a much bigger crop of carmakers manufacturing vehicles across the globe. Honda, Nissan and Mitsubishi combined sold about 4 million vehicles globally in the first six months of the year, well shy of the 5.2 million that Toyota sold on its own. While the three touted the potential for generating synergies from working together, executives also acknowledged theyÂ’ll have to overcome contrasts with their compatriots.

Renault-Nissan rejig how they manage Daimler partnership, sources say

PARIS — The Renault-Nissan-Mitsubishi alliance is set to scrap a role overseeing ties with Daimler in favor of individual relations with the German group, three sources told Reuters, as they try to better manage a partnership that has not met initial hopes. The shift comes as alliance-level executive Jacques Verdonck, who was in charge of the cooperation with Daimler, retires at the end of the month, the sources familiar with the matter said. France's Renault will instead rely on its head of partnerships, Sandra Gomez, while Nissan will do the same with Catherine Perez. Mitsubishi will also have a person in charge of partnerships, the sources said, adding the bilateral approach was in line with the new "leader-follower" strategy of the alliance. That involves leaning on the strengths of each carmaker in certain areas. Renault and Daimler declined to comment, while Nissan could not immediately be reached for comment. The plan marks another shift following the end of the Carlos Ghosn era at the alliance. The architect of the Franco-Japanese partnership, who also extended the collaboration to Daimler, was arrested on financial misconduct charges in Japan in late 2018, before fleeing to Lebanon in 2019. He denies any wrongdoing. His exit strained already difficult relations between Nissan and Renault, which are now working to get back on track with cost-saving joint production projects among other steps. The partnership with Daimler - which owns high-end brand Mercedes-Benz, contrasting with the more accessible models produced by the others - has also looked in danger of losing steam. Nissan and Renault, both hit by losses, recently sold down their stakes in the German group. Collaborations on Renault's compact Twingo car and Daimler's Smart model are set to end, and some targets for industrial cooperation have been downgraded over the years. But Daimler still has a factory in Mexico with Nissan, and has been exploring the possibility of jointly developing at least one large van model with Renault. An industry shift towards electric vehicles could yet yield other opportunities, one of the sources said. "The collaboration with Daimler is at present made up of Renault-Daimler projects, Nissan-Daimler ones and some between the three," another of the sources said, with yet another saying that the changes reflected a more pragmatic approach.

Mercedes considering Mexico for CLA production

Would you buy a Mercedes-Benz if it were made in Mexico? That's what the German outfit is wondering, as it considers localizing production of the its new budget model at a factory operated by Nissan, of which the automaker is a joint-venture partner.
According to a report from Automotive News, moving production of American-spec CLAs from Hungary to Mexico would protect Mercedes from currency fluctuations. "Mexico is the best location for the United States," Daimler Chairman Dieter Zetsche told AN. The CLA is also expected to become the brand's volume model in the US market, which makes North American production a logical move.
In the event that Mercedes approves the plan, Nissan would expand the capabilities at its Aguascalientes, Mexico plant, allowing production to begin in 2018.