“Joint press conference without handshakes” What are the intentions of both companies? March 28th 17:30
``Companies that cannot adapt to change will be weeded out.'' ``We
cannot afford to wait too long.'' On
March 15, Honda and Nissan announced at a press conference that they had signed a memorandum of understanding for comprehensive cooperation. The words of both presidents, far from the glamorous titles, showed a strong sense of crisis. Why did two long-time rivals suddenly come so close? And what are the intentions of both companies?
(Economy Department reporter Yusuke Noguchi and Hiroki Obi)
“No handshakes” joint press conference
At a press conference in Tokyo on the afternoon of March 15th.
On stage, Honda President Toshihiro Mibe and Nissan President Makoto Uchida did not shake hands until the end.
``We have begun considering a strategic partnership for the era of electrification and intelligence in automobiles.''
Despite the big news that the long-time rivals are considering collaboration, the two people's expressions were not cheerful.
Honda President Mibe
: ``The environment surrounding the global automobile industry is changing dramatically. We recognize that companies that cannot adapt to changes will be forced to weed out.''
Nissan President Uchida: `
`We have to compete not only with traditional automakers, but also with emerging manufacturers that are entering the market with innovative products and business models, and are trying to dominate the market with overwhelming price competitiveness and speed. I can’t afford to stand still.”
This sense of crisis is the reason for the memorandum of understanding.
The two companies have not previously collaborated.
This announcement came as a big shock to those in the industry.
Why are the two companies so close to each other?
There was information that they were exploring ways to collaborate behind the scenes.
However, as a reporter in charge, I honestly felt that the movements of both companies leading up to that day's press conference were much faster than expected.
Honda President Mibe explained this at a press conference.
Honda President Mibe
: ``I have had many discussions with President Uchida about the automotive industry in general, and we had a common understanding of the issues.It was mid-January that we decided to have a little talk about what we should do going forward.'' I think that's about it. After several discussions and various considerations, we came to the conclusion that it seemed to be effective."
The conclusion was reached in a short period of about two months.
Of course, there was little explanation about the specific details of the collaboration in this announcement.
Even so, the reason why they rushed to conclude the memorandum of understanding was probably because they decided that when rivals were to join forces, it was important to decide on a framework first.
This is not to criticize the announcement as lacking substance.
This was because there was a strong sense of crisis and the need to hurry.
One of the big reasons for this is, of course, electrification.
Some point out that the global trend of the so-called EV shift is currently slowing down.
However, from a long-term perspective, the electrification of cars seems unavoidable, and both companies could no longer simply stand by and watch as they were losing a huge gap to overseas manufacturers.
The current status of both companies is as follows.
[Honda]
- Goal of making all new cars sold in 2040 EVs and fuel cell vehicles
- Plan to produce more than 2 million EVs annually in 2030
- GM = General Motors, aiming for sales after 2027 EV joint development canceled
《Nissan》
・Introducing 34 types of electric vehicles between FY2024 and FY2030
・Aiming to reduce the manufacturing cost of next-generation EVs by 30%
・Targeting to make the cost the same as engine cars by FY2030
Both companies have set high goals for the EV shift.
To achieve this, we need to draw up a new vision.
The specific “contents” are yet to be revealed.
Both companies say they will consider the details of the collaboration in the future.
However, he expressed confidence in the effect at the press conference.
Honda President Mibe: ``
It is clear that in the area of electrification and intelligence, costs will not come down unless we have a certain sense of the scale of the number of vehicles.In terms of parts, it will not come down to the efforts of automobile companies, but the effect of bundling numbers. This has a tremendous effect. By adding up the numbers of both companies, we believe that the cost effectiveness will be extremely large."
First, increasing the scale has the effect of lowering component costs.
Automakers are facing a major dilemma, especially when it comes to parts for EVs.
In order to reduce costs, it is important to order large quantities of parts, but it is difficult for Japanese manufacturers, which sell a limited number of EVs, to order large quantities of parts in the first place.
One way to reduce costs would be for multiple manufacturers to work together to use the same parts and order them in bulk.
Furthermore, it seems likely that further collaboration will be effective.
A source said that collaboration through existing parts manufacturers, such as joint production of parts, is also considered.
For example, it is possible that a drive unit called an ``electric powertrain'' that combines motors and other components could be standardized.
A parts manufacturer that does business with Nissan said in an interview, ``If we start doing business with Honda, our business will expand and it will be a big opportunity.''
“Common sense” in the automobile industry changes
Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Lab, points out the following regarding the background and outlook for this incident.
Senior Analyst Sugiura
: ``Changes in the automobile industry have entered a completely different level compared to the way development and business have been done in the past, and it has become necessary to respond to these changes.A major trend in the industry is the combination of new companies. I think it was a symbolic event that happened.Honda
's main business is still engine cars and hybrid cars, so they probably wanted to cooperate with Nissan, and Nissan was lagging behind in the area of intelligence. I think there is a strong sense of crisis and crisis.It would be interesting if both companies could work together on not only electrification and intelligence, but also the current issues of business in China and hybrids.''
A collaboration between Honda and Nissan, where rivals join forces.
The contents that we will examine from now on may develop in a form that differs from conventional wisdom.
For example, it was customary for parts manufacturers to do business with a single automobile manufacturer based on a strong relationship.
If Honda and Nissan go beyond their customary practices and jointly place orders with parts manufacturers and proceed with joint development of parts, it will become a model case for new collaboration between automakers, and a form of collaboration for other manufacturers. It may also affect.
The automobile industry is experiencing unprecedented waves of change.
In addition to electrification and intelligence, new entrants and the rise of emerging manufacturers make it difficult to predict the future accurately.
That's probably why Honda and Nissan decided to collaborate.
If we think of ``comprehensive'' collaboration as a broad preparation to prepare for various unexpected situations in the future, we can understand the two presidents' ``no handshake'' and ``sense of crisis'' press conference.
Economic Affairs Department reporter
Yusuke Noguchi Joined the agency
in 2011
After working at the Kochi Bureau, Economic Affairs Department, and Nagoya Bureau, currently works for
the automobile industry.
Hirotaka Oo,
reporter for Economic Affairs Department
Joined the station in 2016
After working at the Gifu and Shizuoka stations, he is currently at the
Hamamatsu Gyoza station.He loves Hamamatsu Gyoza.