Honda, Nissan, Mitsubishi formally partner up on EVs, A.I. and more

A new pact formed today by three Japanese automakers, Mitsubishi, Nissan and Honda, aims to build next-gen electric and software-defined vehicles.

Driving the news: Nissan and Honda first agreed to partner up on vehicle technology back in March. Today, their alliance officially expanded to include Mitsubishi, although it isn’t clear whether the new member’s involvement will be quite the same.

• The three brands signed a memorandum of understanding that brings Mitsubishi into the fold.

• The agreement calls for working together on EVs and automotive software, including artificial intelligence and autonomous driving systems.

Zooming in: Despite the arrival of a third ally, Honda and Nissan have also announced the next evolution of their previously formed partnership.

• The two automakers now plan on immediately sharing resources for EV, securing components and jointly developing software. Additionally, they aim to create a battery system that can be used in either brand’s models.

• The brands have also agreed to “complement” each other’s lineups, a deal which extends to internal combustion engine models.

• It’s likely Mitsubishi will contribute something similar, but it’s too early to say what level of participation it will take on.

Zooming out: All three companies are facing intense competition, both domestically and internationally.

• Toyota, Subaru and Mazda joined forces earlier this year to develop eco-friendly gas engines.

• That partnership seems less involved than the one announced today, bit it signals a line in the sand growing between Japan’s automakers.

• Outside of Japan, virtually all international automakers have struggled to defend their market share in China due to the expansion of its home-grown brands.

Bottom line: More collaboration between automakers is excellent news for consumers and dealers, who stand to benefit from better products with better funding. That being said, it will be interesting to see how ownership is shared between the three brands once new models arrive. Corporate alliances can get messy fast.

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