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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.

Recharge Wrap-up: BYD e6 taxi in Canoas, BMW wins award for second life battery project

BMW has won a 2015 Energy Storage North America (ESNA) Innovation Award for its second life battery project. The BMW i ChargeForward project takes batteries that have been retired from automotive duty, and puts them to work as stationary energy storage for a solar energy system. It also integrates BMW EVs into the grid, and uses software to manage charging based on grid load. "The goal of the BMW i ChargeForward project is to show how electric vehicles with smart charging capability and stationary second life applications of EV batteries can provide valuable flexibility that would make it possible for utilities to maximize the effectiveness of the existing electricity grid, which we expect to ultimately lower total cost of EV ownership for consumers," says BMW Advanced Technology Engineer of Sustainable Mobility, Dr. Simon Ellgas. Read more from BMW. Honda will add 120 EV chargers at the campus of its Torrance, California headquarters. Honda is also adding a DC fast charger adjacent to the campus that is accessible to the public. "Making workplace charging ubiquitous and accessible is the cornerstone of an effective public charging strategy that supports the maximum number of vehicles," says Honda's Environmental Business Development Office VP, Steven Center. "This expansion will make commuting in an EV a convenient option for the vast majority of Honda associates in Torrance, including those without access to charging at their homes or apartment buildings." Read more from Honda. The city of Canoas, Brazil has begun testing the BYD e6 electric taxi. The city will evaluate the EV taxi over a period of 60 days. "This may translate into vital savings for our survival," says Sergio Oliveira, President of the Taxi Driver Union in Canoas. "With today's high fuel prices, our operation is becoming unfeasible. This car's cost-benefit seems to be worth it. Now we need to get to know the car better by trying it out in the street, but so far we're quite pleased with what we've seen." The test of the electric taxi is part of a larger effort to electrify transport in Canoas. Read more in the press release below. Another Brazilian City Embraces a BYD Electrified Public Transportation Solution In a bid to offer its citizens a more economical and sustainable alternative in public transportation, the Brazilian city of Canoas has recently started testing the BYD e6 BEV as taxi.

Honda could halve its US lineup without crimping its sales much [w/video]

Taking a detailed look at the Honda lineup in the US, it isn't hard to see the strength of some models and the weaknesses of others. A recent report on Autoline Daily points out that its five core models - the Accord, Civic, CR-V, Odyssey and Pilot - make up a full 93 percent of Honda's sales in the US. Through April, Honda has sold 419,798 vehicles, and 389,474 of them were from these core models; not to mention the fact that the Accord was the top-selling car in the US last month.
This means that Honda could technically cut six of its 11 models and only lose about 5,000 sales per month. Of course, this is just some data crunching and there is no reason to believe that Honda is planning to kill off any of its models in the near future. In fact, it seems to be committed to the Ridgeline, while Japanese-made models that may actually lose money for Honda still fill unique voids. Scroll down for the video report - fast-forward to the 1:43 mark for the Honda info.