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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: Nissan, Tesla report CO2 savings, rare earth metal recycling simplified

A new process simplifies the recycling of rare earth metals. While the strong magnetic properties of metals like neodymium and dysprosium make them useful in electric vehicles traction motors, there are concerns about their availability and the environmental costs of mining them. Researchers at University of Pennsylvania have developed an easier method to recycle those metals that is less energy intensive and more cost effective. "We have designed a way to separate the two metals by selectively dissolving the neodymium in a solution and leaving behind the dysprosium as a solid," says Justin Bogart, a graduate student working on the project. "This quick and easy method has allowed us to separate equal mixtures of the metals into samples that are 95 percent pure." Now the team is working to improve that level of purity. Read more from University of Pennsylvania. Nissan Leaf drivers in Europe have saved over 55,000 tons of CO2 emissions. Worldwide, the 178,074 Leafs sold account for the prevention of over 293,000 tons of CO2 emissions so far. That equates that to the neutralizing effect of 19 million trees. Besides the positive effects on environmental and noise pollution that switching to electric mobility provides, Nissan also points out that it's good business, too. EVs like the Nissan Leaf and e-NV200 cost about 40 percent less than combustion vehicles to maintain, and the cost of electricity is substantially lower than that of fossil fuels. Additionally, Nissan has published a video of the Leaf touring Bristol to celebrate the greening of European cities with the help of electric vehicles. See the video, and read more from Nissan. Tesla customers have driven a cumulative 1 billion miles. Together, nearly 75,000 Model S drivers have prevented more than 570,000 tons of CO2 emissions worldwide. To put that in perspective, a billion miles is the equivalent of 4,186 trips to the moon, and almost 40,000 trips around the Earth. In the UK, where the Model S is celebrating its one-year anniversary, drivers have already accumulated 6.6 million miles. Tesla is celebrating its milestone with the Next Billion Miles Tour, hosting hands-on events and test drives in 80 cities across North America, Europe and Asia. See the video from Tesla above, visit the One Billion Miles microsite and read more in the press release below.

Nissan's dismal 2019: Where does Japan's struggling brand go from here?

Auto sales have gradually slowed from their peak during the boom years that followed the global recession, but Nissan's rapid decline stood out even in a year when few high-volume manufacturers had much to be excited about.  Of the "Japanese 3," Nissan's 2019 performance was by far the most troubling. Through November, when the company last posted its global sales figures, its volumes were down 8 percent compared to 2019. Here in the United States, its full-year numbers were down 9.9% in an industry that slid just a hair more than 2 percent overall.  Meanwhile, Honda managed a slight increase in U.S. sales (0.2%) and Toyota, much like the industry in general, finished the year down approximately 2%. Like Nissan, Honda and Toyota have remained committed to cars — including compact and midsize sedans — and have a comprehensive portfolio of offerings in the key SUV and crossover segments.   On paper, Nissan's lineup checks all the right boxes. From the subcompact Kicks up to the Armada, it has something for sale in virtually every possible nook and cranny of the people-mover segment, but almost all of these trucks (and trucklets) took a beating in 2019. Only the baby Kicks managed to improve on its 2018 sales, which isn't saying a whole lot, considering it was barely sold in 2018 to begin with.  In fact, the bonus volume contributed by Kicks helps obscure just how poorly some of Nissan's key offerings performed last year. Combined Rogue and Rogue Sport sales slid 15%; Murano was down more than 18%; the Pathfinder and Armada managed to pace the general industry, dropping 2.8 and 1.9%, respectively, but the astute reader will note at this point that we've yet to single out any bright spots. The news was even worse on the truck side. Frontier was down 9.1%. Titan? Down 37.5%. Crossovers and SUVs are selling. Trucks, even from import brands, are also selling. Toyota's mid-size Tacoma was up in 2019; both it and the full-size Tundra still more than tripled the volume of their Nissan competitors. Further muddying the waters, Honda managed its year-over-year volume increase without selling a full-sized pickup at all.  What, then, is Nissan's problem? To borrow an oft-used phrase, "It's the product, stupid." The most striking evidence of this issue is the Rogue, which competes in the compact crossover segment — a collection of vehicles that essentially sell themselves.