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Mitsubishi to join alliance with Honda and Nissan, Nikkei reports

TOKYO — Japan's Mitsubishi Motors is set to join an alliance between Honda Motor and Nissan Motor, creating a tie-up between automakers with combined sales of more than 8 million vehicles, the Nikkei newspaper said on Sunday. Mitsubishi Motors, which is 34% owned by Nissan, will work with Honda and Nissan to finalize the details of their strategic partnership, Nikkei said, adding the three firms intend to standardize in-vehicle software that controls cars. Mitsubishi Motors declined to comment on the report, while a Nissan spokesperson would only say the report was not based on something either of the companies had announced. Spokespeople for Honda did not respond to a request for comment. The push comes as Nissan, Japan's third biggest automaker, has been steadily losing market 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 Thursday, the company slashed its annual outlook after heavy discounting in the U.S. almost completely wiped out its first-quarter profit. Nissan and Honda said in March they were considering a strategic partnership to collaborate on producing electric vehicle components and artificial intelligence in automotive software platforms. Mitsubishi Motors is already part of a long-standing alliance with Nissan and France's Renault that the three automakers last year agreed to restructure, aiming for a downsized but more pragmatic and agile partnership. Separate collaboration between Nissan, Honda and Mitsubishi Motors could help Japan's automakers cut costs and beef up to battle tough competition in EVs, dominated by companies like China's BYD and Tesla. In China, the world's largest auto market, Japanese brands previously were strong but are now up against domestic automakers that have rapidly increased production and won over consumers with low-priced vehicles loaded with software.

Honda revamps F1 engine for McLaren

Things haven't been going smoothly for Honda since returning to Formula One, and the Japanese automaker says the challenge has been greater than it anticipated. But after a stronger showing at the recent Hungarian Grand Prix, Honda says its reliability issues are behind it and is working on introducing a revamped engine for the second half of the season. "I am confident our reliability problems are now behind us, which means we can turn our attention to increasing power," Honda racing chief Yasuhisa Arai told Autosport. "After the summer shutdown our plan is to apply a new-spec engine using some of our remaining seven tokens." The "tokens" to which Arai refers are a way for the FIA to limit engine development. The power units are broken down into 66 such tokens in the regulations, and each engine supplier can change up to 32 of them throughout the season. The allowance was at first afforded only to returning suppliers Mercedes, Ferrari, and Renault, but Honda succeeded in convincing the FIA to allow it the same leeway. Honda has been spending its development tokens on fixing reliability issues, but will shift its focus to improving performance. The McLaren team that Honda powers has only gotten both of its cars to the finish line at two out of 10 races this season. Most of those problems came down to the new engine package. That's compared to only two retirements the team suffered last season, when it was still under Mercedes power, and none the year before. In Hungary, however, the team not only got both cars to the finish line, but placed both in the points for the first time this season. "The sport has changed immensely since the McLaren-Honda 'glory days'," said Arai. "The current technology is much more sophisticated, and it is tough to make a good racing car. We knew it wouldn't be easy, but perhaps we didn't imagine it would be this hard." The Japanese manufacturer is now spending the summer break developing its power unit. Many of those changes are expected to be rolled out in time for the Belgian Grand Prix later this month, with the rest to follow in the ensuing races. Beyond reliability, engine performance is particularly important for the high-speed races at Spa and Monza, where the subsequent Italian Grand Prix will be held early next month. Related Video:

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."