Mitsubishi Motors Joins The Honda-Nissan Alliance

Japan’s Mitsubishi Motors will join the alliance between Honda Motor and Nissan Motor, creating an automotive group with total sales of more than 8 million vehicles, the Nikkei Business Daily reported on Sunday.

Mitsubishi Motors, which is 34 percent owned by Nissan, will work with Honda and Nissan to finalize the details of their partnership, but the three firms intend to standardize the in-vehicle software that controls the cars, the Nikkei said.

Mitsubishi Motors declined to comment on the report, while representatives for Nissan and Honda were not immediately available for comment.

The pressure comes as Nissan, Japan’s third-largest carmaker, continues to lose market share in its two biggest markets, the United States and China, which together accounted for half of its global sales in the year to March.

On Thursday, the firm cut its annual forecast after a big discount in the US almost completely wiped out its first-quarter profit.

The cooperation could help Japanese automakers cut costs and strengthen their fight against tough competition in electric vehicles, dominated by firms such as China’s BYD and Tesla.

In China, the world’s largest auto market, Japanese brands used to be strong, but now face domestic automakers that have rapidly ramped up production and won over consumers with cheap, software-powered vehicles.

Nissan and Honda said in March they were considering a strategic partnership to produce components for electric vehicles as they seek to gain a greater foothold in the global market for battery-powered cars, which is expected to grow in the coming years.

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