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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.

Honda Accord Hybrid sales capacity constrained

Honda might be selling more hybrids if it could just get them to dealers. While the second-generation Insight never lived up to sales expectations and production is ending, the Japanese automaker is seeing strong demand for the Accord Hybrid here and abroad. However, there is so much global consumer desire that it can't keep them in US showrooms.
The problem limiting the sales of the Accord Hybrid is its battery pack and its popularity in Japan. "There's a waiting list for the product," said Jeff Conrad, Honda general manager, to Ward's Auto about the sedan's US popularity. While the American Accord is built in Marysville, OH, the batteries are imported from Japan, where the model is quite popular. According to Ward's data, the automaker sold 2,414 examples of the hybrid version from October 2013 to February 2014 in the US, but it shifted 6,000 units in Japan in its first three months on sale. Conrad also admitted that the constrained supply is limiting the amount of marketing the automaker can do for the hybrid.
Honda spokesperson Chris Martin told Autoblog the company is working on a solution to increase production for the near future. "We are going to resolve the battery issue," he said.

F1 champ Fernando Alonso geared up for rookie run at Indy

NEW YORK - Twice Formula One world champion Fernando Alonso surprised himself with his qualifying success for Sunday's Indianapolis 500, but the Spaniard knows his biggest challenge will come on race day. Alonso, racing on an oval for the first time, averaged more than 230 miles per hour (370 kph) to qualify fifth fastest for a place in the second row in the 33-car field at Indianapolis Motor Speedway. "I was a bit surprised," Alonso, 35, told Reuters on Tuesday. "When we announced to come here one month ago, we did it without knowing how competitive we could be, if I was able to adapt to oval racing, to these cars." "I still lack experience in important moments of the race. I will try to compensate with the speed, with motivation and we will see what happens." A lack of experience may cost him on the biggest day of US racing when a champion will be crowned after 200 laps of the massive 2.5-mile oval, but Alonso is geared up for the chance. "You respect the place, respect the speed. You respect your colleagues out there, but at the end of the day, when you are in your car and close the visor, you would like to have one mile per hour more. It's never enough," he said. While Alonso passed the entrance exam with flying colors in qualifying, he knows the hardest test is to come. "The biggest challenge I will face is in the race when you are running in traffic, those groups of cars that form in the race. It changes completely the behavior of the car. "You feel the car very loose... we've been practicing that with the team, trying to create our own groups because we are six cars," Alonso said. "I still lack experience in important moments of the race. I will try to compensate with the speed, with motivation and we will see what happens." GUESSING GAMES Alonso said timing his moves may be a guessing game. "Taking the opportunity to overtake and to pass will be a difficult decision to make," he said. "There are many factors you need to address while you are driving 230 miles per hour. "You have to stay calm, be ready for the last one-third of the race. That is where it comes." Alonso said the race demands a balance between pushing the limit and not crossing the line into recklessness. "With no experience, for me you're not sure sometimes where you are with that line - if you are over the limits of the car, or over the limits of running with the traffic.