These 2 Automakers Hold The Key To Mitsubishi's Survival

Key Takeaways

Report suggests Mitsubishi will join the Honda-Nissan alliance to compete with Tesla and Chinese brands in the EV segment.
The alliance will open up possibilities to leverage each other’s strengths, potentially expanding respective lineups and increasing profits.
One of the main focuses of the partnership will be in-vehicle software development.

Mitsubishi Motors will reportedly join forces with Honda and Nissan, adding a third automaker to the alliance, reports Japan’s Nikkei Asia. In March, Honda and Nissan announced a partnership that would allow the two entities to reduce costs by jointly developing new technology, electric vehicle components, and software.

Nissan, which owns 34.01% of Mitsubishi, had not announced whether the latter would benefit from the strategic alliance. None of the automakers have made an official statement regarding this latest development, and Nikkei has not shared its source.

UPDATE: 2024/07/29 18:08 EST BY JARRYD NEVES

Mitsubishi replied to our request for comment with the following official statement:

“This report is not based on any official statement from our company; we do not comment on speculation.”

Mitsubishi

Mitsubishi is a Japanese automaker founded in 1870 and is part of the Mitsubishi Group and broader Renault-Nissan-Mitsubishi Alliance. Mitsubishi Motors officially started producing passenger vehicles in 1917, the Mitsubishi Model-A, before building a legacy as the manufacturer of off-roaders like the Pajero. Mitsubishi established a strong presence in motorsport, with models like the Lancer Evolution competing in WRC and the Pajero Evolution taking multiple wins in the Dakar Rally. Its best-ever sales year in the USA was 2002, when it sold 345,915 cars.

Founded: 1870
Founder: Yatarō Iwasaki
Headquarters: Tokyo, Japan
Owned By: Mitsubishi Group
Current CEO: Takao Kato

Partnering Up To Fight Off Tesla And The Chinese

Many mainstream automakers are struggling to make their mark in the electric vehicle segment, which is dominated by Tesla and the Chinese. If they want a chance to compete, these alliances are necessary, as they can drive costs down, foster sophisticated designs and technology, and allow for EVs to be sold more cheaply.

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Per the report, Mitsubishi will join the “framework” of the existing alliance, giving all three a better shot at succeeding in the electric vehicle market. While Nissan and Honda are just beginning to make inroads into the modern-day EV market, Mitsubishi has been left behind, selling just one (the EK X) in Japan. In the United States, the brand offers the Outlander PHEV, and that’s it.

Alliance Opens Up Many More Possibilities

Aside from electric vehicles, the respective automakers can leverage each other’s talents and strengths. Mitsubishi, for example, has plenty of experience with pickup trucks, while Honda and Nissan could use their sports car prowess to breathe some excitement into crossover-obsessed Mitsubishi. Expanding lineups (and doing so cost-effectively) could raise profits for all three brands.

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One of the main focuses of the alliance is the development of in-vehicle software. Being able to improve future cars with OTA updates is great for both the driver and automaker, but the software and infrastructure required to do this costs an arm and a leg. Splitting the costs between three companies will make things a lot easier and allow the alliance to funnel resources to other areas.

Should Mitsubishi partner with Nissan and Honda, all of Japan’s major automakers will have split up into groups. Earlier this year, Toyota announced it would be working with Subaru and Mazda to develop carbon-neutral combustion engines, with each brand taking a different direction. Toyota also works with Daihatsu, Subaru, and Suzuki in the electrification sphere.