Nissan And Honda May Collaborate On Cheap EVs

Japanese automakers Nissan and Honda are reportedly in talks to potentially co-develop affordable electric vehicles and fight the slew of cheap electric imports from China. This is according to a new report from Nikkei Asia, citing unnamed insiders.

According to these sources at Nissan, the Yokohama-based automaker wants to adopt a common EV drivetrain that both it and Honda could purchase from a supplier together. Furthermore, Nissan reportedly wants to design and co-develop a shared EV platform with its Japanese counterparts. Sources indicate that the idea is still in the early stages at Nissan, and there's no word yet on where Honda stands.

Should the two automakers reach an agreement, they could look into developing entire vehicles and joining forces for battery procurement. Developing electric cars, particularly entry-level models with appealing price tags is a huge challenge for automakers.

Western automakers have said it's tough to compete in the EV segment, as the Chinese brands can provide consumers with affordable electric vehicles that still turn a profit. As a result, the European Commission is considering introducing tariffs for Chinese-built EVs to maintain a healthy level of competition. However, industry leaders such as Stellantis CEO Carlos Tavares believe this won't work.

Instead, Tavares believes the solution is to build vehicles using technology sourced in China in regions where Chinese EVs are perceived as a threat. Of course, this would come with several challenges and obstacles. In the US, for example, manufacturers cannot use battery materials sourced from «foreign entities of concern» if they want their vehicles to qualify for the $7,500 tax credit incentive.

Automakers have pleaded with the treasury to rethink this, as it would result in more affordable EVs for everyone.

As a result, automakers have had to get creative and are forging partnerships with unlikely companies. In the case of the new Prologue (and Acura ZDX), Honda teamed up with General Motors to develop these cars. As a result, they are underpinned by GM's BEV3 platform and use Ultium batteries and drive motors. Honda has also partnered with Sony to create the Afeela